Formula
Interest saved is the difference between the two schedules:
Interest saved = original interest − interest with the extra payment
The payoff page leads with the months saved. This page leads with the dollars.
Assumptions
- The extra payment happens every month.
- No prepayment penalty is added.
Worked example
A $200,000 balance at 6.5% for 30 years with $200 extra each month saves $90,074.66 of interest.
Input definitions
- Extra monthly principal
- Added to the required payment and applied to the balance.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Is this the same as paying biweekly?
Not exactly. A biweekly plan is about one extra payment a year. Enter that extra as a monthly amount if you want this page to estimate it.
Can the extra payment be zero?
Yes. Interest saved is then zero.