Loan Calculator with Extra Payments

Using our loan calculator is straightforward. Start by entering your total loan amount using the slider or typing it directly into the input field. Next, set your annual interest rate — this is the percentage your lender charges per year. Then choose your loan term in months.

If you plan to make extra payments each month, enter that amount in the "Extra Monthly Payment" field. The calculator instantly updates to show your monthly EMI, total interest, total payment, and payoff timeline. Scroll down to view the full amortization schedule, export it as a CSV file, or compare two different scenarios side by side.

The pie chart breaks down your total cost into principal and interest, while the area chart shows how your balance decreases over time. Use the shareable link button to save or share your exact calculation with anyone.

Loan payments are calculated using the standard EMI (Equated Monthly Installment) formula, which ensures you pay the same amount every month over the life of the loan. The formula is:

EMI = P × r(1+r)ⁿ / ((1+r)ⁿ - 1)

Where P is the principal (the amount you borrow), r is the monthly interest rate (annual rate divided by 12 and converted from percentage), and n is the total number of monthly payments.

Each monthly payment consists of two parts: interest and principal. In the early months, a larger portion of your payment goes toward interest. As the balance decreases, more of each payment reduces the principal. This is called amortization.

When you make extra payments, the additional amount goes entirely toward reducing the principal balance. This reduces the interest charged in subsequent months, creating a compounding savings effect. Our calculator recalculates the amortization schedule month-by-month to show you the exact impact of extra payments, including total interest saved and months shaved off your loan term.

For interest-free loans (0% APR), the calculation simplifies to dividing the principal equally across all months. All monetary values are rounded to the nearest cent to ensure accuracy in real-world financial planning.

1. Make biweekly payments. Instead of 12 monthly payments per year, pay half your monthly amount every two weeks. This results in 26 half-payments, or 13 full payments per year — one extra payment that directly reduces your principal.

2. Round up your payments. If your EMI is $347, round up to $400. The extra $53 per month goes directly to principal and can save thousands over the life of your loan without significantly impacting your monthly budget.

3. Refinance when rates drop. If interest rates have fallen since you took out your loan, refinancing to a lower rate can reduce both your monthly payment and total interest. Use our comparison tool to see the difference.

4. Choose the shortest term you can afford. A 36-month loan costs significantly less in total interest than a 60-month loan. Use the calculator to find the sweet spot between an affordable monthly payment and minimal total interest.

5. Apply windfalls to your balance. Tax refunds, bonuses, and side income can make powerful one-time principal payments. Even occasional extra payments make a meaningful difference in total interest costs.