What this tool does
Compare the original amortization with monthly and one-time extra payments to estimate interest saved, payoff time and net savings after an entered fee.
How to use it
- Enter your values: Loan principal, Annual rate (%), Original term (years).
- Calculate
- Result: Interest saved, Months saved, Net savings after fee, New payoff months.
Formula and method
Each month calculates interest on the opening balance, then scheduled principal and optional extra principal. Net savings = base interest − accelerated interest − entered prepayment fee.
Worked example
For a 300,000 loan at 5% for 30 years, test 300 extra each month and a 10,000 payment in month 24.
Useful for
- Testing recurring overpayments
- Comparing a lump sum
- Reviewing fees before paying
Limits and notes
Assumes a fixed rate and monthly payments. Contract restrictions, changing rates, taxes and opportunity cost of cash are not automatic.
Frequently asked questions
Is this an official decision or quote?
No. It is a planning result based only on your inputs. Confirm important decisions with the relevant provider or professional.
Are my entries stored?
No. This tool calculates in the current browser and does not send the values to Easynivo.
Source and method review: CFPB — Your Home Loan Toolkit