Finance & Economics / Personal Finance
Loan Amortization with Extra Payments Calculator
Additional amount to pay every month
Additional payment once per year (e.g., tax refund, bonus)
How Extra Payments Work
What are extra payments? Additional amounts beyond your required monthly payment that go directly to reducing your loan principal, saving you interest.
Impact of Extra Payments:
- Reduce total interest paid over life of loan
- Shorten loan term (pay off years earlier)
- Build equity faster
- Save thousands to tens of thousands in interest
Common Extra Payment Strategies:
- Round Up: Pay $2,000 instead of $1,897.22
- 13th Payment: Make one extra full payment per year
- Biweekly Payments: Pay half your monthly payment every 2 weeks (26 payments = 13 months)
- Windfall Payments: Apply tax refunds, bonuses, or gifts to principal
- Percentage Increase: Pay 10-20% more each month
Example: On a $300k 30-year loan at 6.5%, paying just $200 extra per month saves $94,000 in interest and pays off the loan 7 years earlier.
Use this loan amortization with extra payments calculator to compute personal finance results from your inputs.
Formula
Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1] Where P = principal, r = monthly interest rate, n = number of payments Recalculate payoff with extra payments applied