MoneyBasisUnderstand your result
Payoff time
The estimated number of months until the balance reaches zero if payments continue as entered.
Interest saved
The estimated reduction in total interest when extra payments are applied to principal.
Remaining balance
The unpaid principal after each simulated month.
How this calculation works
- Enter the remaining balance, interest rate and current monthly payment.
- Add an extra monthly amount to see how payoff time and total interest change.
- Compare the original schedule with the extra-payment schedule.
Each month: interest = balance × r; principal = payment − interest.
Payoff time is simulated month by month. If the payment does not cover interest, the loan cannot be paid off.
- Extra payment
- An extra payment is an amount above the required monthly payment. In this calculator, extra payments are applied entirely to principal.
Assumptions & limitations
- Interest is charged monthly on the remaining balance.
- Extra payments go entirely to principal.
- Fees, deferments and variable rates are not modeled.
Educational estimates only. MoneyBasis does not provide financial, investment, tax or legal advice.
Frequently asked questions
How do I compare an extra payment?
Keep the balance, rate, and current payment fixed, then enter an extra monthly payment. The two chart lines compare the current and accelerated plans.
Where can I see the principal paid?
Expand the payoff schedule below the chart to inspect the displayed payments, principal, interest, and remaining balance.
Why does it say the payment is too low?
The monthly payment has to cover that month’s interest. If it does not, the balance grows instead of shrinking.
See a worked example
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