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Extra Payment Payoff Calculator

Quick answer

Extra principal pulls the date in: 250/month extra on a 220k loan at 5.8% (payment 1,391) clears it ≈5 years early.

  • Works the same on phone and desktop.

Figures are estimates from this calculator’s standard formula — adjust the inputs in the tool below for your exact number.

How Does the Extra Payment Payoff Calculator Work?

Solve P = (PMT + extra) × (1 − (1+r)^−n) ÷ r for the new n

An extra-payment payoff calculator shows how additional principal shortens the loan term and cuts total interest — the two numbers borrowers care about. The computation rests on Solve P = (PMT + extra) × (1 − (1+r)^−n) ÷ r for the new n. A 220,000 loan at 5.8% over 25 years pays 1,391 monthly; adding 250 of principal monthly clears the balance ≈5 years early and saves roughly 45,000 of scheduled interest. Each input you type is substituted the instant you release the key, and the result is expressed in exactly the units or currency you chose.

  1. 1

    Step 1

    Start with the primary figures the Extra Payment Payoff Calculator asks for.

  2. 2

    Step 2

    Your values are substituted into Solve P = (PMT + extra) × (1 − (1+r)^−n) ÷ r for the new n.

  3. 3

    Step 3

    Read off the computed result.

  4. 4

    Step 4

    Vary one input at a time to see its effect.

Use Cases

Debt-free date planning

Pulling the payoff into an earlier year

Windfall deployment

Pricing bonuses against the balance

Refinance alternative

Comparing extra payments with a refi's savings

Interest budget cuts

Forecasting lifetime interest saved

Common Mistakes

  • Posting as prepayment

  • Skipping the emergency fund

  • Recasting confusion

FAQs

Lump sum or monthly extra?

Both work: a 10,000 lump in year 2 saves ≈19,000 here; 250/month saves ≈45,000 — steady extra wins on total, lumps win when windfalls arrive.

Where must the extra go?

Straight to principal — tell the servicer explicitly, or it may post as an early next payment and earn you nothing.

What formula does the Extra Payment Payoff Calculator use?

It computes Solve P = (PMT + extra) × (1 − (1+r)^−n) ÷ r for the new n — with extra amounts post entirely to principal.

Does it store the numbers I enter?

No — the Extra Payment Payoff Calculator computes locally in your browser, so nothing you type is saved or transmitted anywhere.

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