Early Loan Repayment Calculator: Save Money and Time on Your Mortgage
Enter your figures, tap “Calculate,” and the tool shows how extra payments shrink interest and term. Paying $100 more each month on a 30-year, $200 k mortgage at 4 % cuts 57 payments and saves about $26 k in interest (Fannie Mae, 2022).
Early Loan Repayment Calculator
Results
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How to use the tool
1. Loan Amount ($): Type your principal—e.g., 180 000 or 320 500.
2. Annual Interest Rate (%): Enter the nominal yearly rate—e.g., 3.85 or 6.20.
3. Loan Term (years): Add the planned duration—e.g., 15 or 35.
4. Early Repayment Amount ($): Insert your lump sum—e.g., 7 500 or 22 000.
5. Early Repayment Timing (months): Pick when you will pay—e.g., 24 or 84.
6. Repayment Option: Select either Shorten Loan Term or Reduce Monthly Payment, then press Calculate.
Core formulas
Monthly payment:
$$
P = rac{r \times L}{1 – (1+r)^{-n}}
$$
Remaining balance after m payments:
$$
B = L(1+r)^{m} – P \, rac{(1+r)^{m}-1}{r}
$$
New term when keeping the same payment:
$$
n’ = rac{\ln\!\left( rac{P}{P – r B’}\right)}{\ln(1+r)}
$$
Experts suggest three-month expenses before large prepayments to avoid liquidity issues (Vanguard, 2022).
Will my lender re-amortize automatically?
Many mortgage servicers adjust term on request; others keep payments constant—check your contract (Freddie Mac, 2023).
Is there a tax impact?
Less interest means smaller deductions for itemizing homeowners under current U.S. code (IRS Pub 936, 2022).
Important Disclaimer
The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
