Loan Payoff Calculator
Calculate how extra monthly payments or one-time lump-sum principal paydowns accelerate your debt payoff and save thousands in interest.
Accelerated Amortization Payoff Model
New Monthly Payment = Base Payment + Extra Monthly | Principal Reduction = New Payment − Interest | Months Saved = Standard Term − Accelerated Term- Base Payment: Your contractually required regular monthly installment.
- Extra Payment: 100% of additional funds applied directly to principal balance reduction.
- Lump-Sum Paydown: One-time payment immediately reducing starting principal.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes the lender applies 100% of extra payments directly to principal reduction without prepayment penalties.
Frequently Asked Questions
Do all lenders allow extra payments directly to principal?
Most consumer loans do, but you should specify "apply extra payment to principal" when submitting payments to avoid the lender treating it as an advance on next month's bill.
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