How to use this planner
Enter the loan amount, the interest rate, and the term. The planner shows the monthly payment, the interest paid over the whole term, and a year-by-year view of how the balance falls.
Use the extra monthly payment to see how a little more each month changes the result. The comparison shows the interest saved and the time saved, without changing the loan you entered.
How the calculation works
The monthly payment is set so the loan reaches zero at the end of the term. Each month, the interest is the balance multiplied by the monthly rate, which is the annual rate divided by the number of months in a year. The rest of the payment reduces the balance.
With an extra payment, the same loan is paid off month by month with the larger total payment, and the planner counts the months until the balance reaches zero.
Understanding the result
The results assume the rate stays fixed and every payment is made on time. Lenders can calculate fees and interest in their own ways, so check the loan documents before you decide.
