Early Loan Repayment Calculator
See how much time and interest you could save by paying extra on top of your regular loan repayment, compared with sticking to the minimum schedule.
Your results
Calculation breakdown
- Simulation
- amortise balance at regular repayment vs regular + extra
- Savings
- difference in months and total interest between the two
Worked example
On a $20,000 loan at 9% with a $450 monthly repayment, adding an extra $100 a month could clear the loan roughly a year sooner and save well over $1,000 in interest.
Assumptions
- Assumes the extra amount is paid consistently every month for the life of the loan.
- Assumes no early repayment fees apply; check your loan contract.
- Interest rate is assumed constant over the comparison period.
How this calculator works
This calculator simulates a reducing-balance loan repaid with an extra amount added to each regular instalment, then compares the resulting term and total interest with the original schedule. It shows the time saved and dollars saved in interest from committing to a higher regular repayment.
Frequently asked questions
Does making extra repayments always save interest?
Yes, on a standard reducing-balance loan, any extra that reduces the principal sooner lowers the interest charged in every future period, provided there are no early repayment penalties.
Should I check for early repayment fees first?
Yes, some fixed-rate loans in Australia charge break costs or early repayment fees, so confirm your loan contract allows extra repayments without a penalty that could offset the savings.
What if I can only afford a small extra amount?
Even small, consistent extra repayments compound over the life of the loan; try a few amounts in this calculator to see the effect before committing.
Results are estimates only and are not financial, tax, legal or credit advice.