Introduction
Extra payments go straight to the balance, after interest for that month. That shortens the loan and cuts total interest, often by more than people expect.
Quick answer
- Extra payments reduce the balance faster, so future interest falls.
- Even £100 a month extra can save many months.
- Check for early-repayment fees first.
What is it?
Pay the normal monthly payment, plus the extra amount, every month. The calculator simulates month by month until the balance reaches zero.
How to use the calculator, step by step
- Enter your numbers in the calculator linked above.
- Press Calculate.
- Check the main result and the total, not just the first number.
- Try a second version — a different rate, term or payment — and compare the totals.
Worked example
Loan £10,000 at 7% over 5 years: base payment £198.01, 60 months. Adding £100 a month extra: 38 months, interest £1,161.33 — 22 months saved.
Common mistakes
Overpaying without checking fees; overpaying while high-rate card debt remains; leaving no emergency fund.
Frequently asked questions
Is the calculator result exact? No, it is an estimate for learning and planning, based on the numbers you enter and the assumptions stated on the calculator page.
Should I check with a professional? Yes, for a mortgage, loan, tax or investment decision, check with your lender, bank, tax authority or a qualified adviser before you decide.
Can I use this in the US, UK or Canada? The maths is the same, but rates, tax bands and lender rules differ by country. Use the numbers and rules for your country, and check the official source where a rate or band matters.
Conclusion and next step
Try your own numbers in the calculator, compare the totals, and read the next calculator guide from the homepage when you are ready.
Disclaimer: This article and calculator are for information and education only. Results are estimates and not financial advice. Please check with your lender or a qualified adviser before making a financial decision.