More in Funds & Goals
What this calculator does
This calculator compares the standard repayment plan against adding $50 per month. It shows months saved and total interest avoided.
The math
The tool amortizes the loan month by month under both payment plans. Interest = balance × monthly rate. Principal = payment − interest.
Worked example
A $25,000 loan at 5.5% with a $280 standard payment and an extra $50 saves about two years and a few thousand dollars in interest.
Why this matters
Saving and investing work best when the timeline is concrete. This calculator replaces vague goals with a date, a contribution, or a target you can automate.
Methodology and transparency
This page publishes the exact formula used to compute the result, so you can verify it in a spreadsheet or check the assumptions against your own situation. The worked example uses the tool default inputs; change any number and the result updates live in your browser. No data is sent or stored.
Common questions
Does the extra $50 all go to principal?
Yes, after the monthly interest is covered, the rest reduces principal.
What if I have multiple loans?
Run the calculator for each loan or use the Debt Snowball vs Avalanche tool for the overall strategy.
Can I change the extra amount?
Yes. Enter any extra payment amount to see its impact.