Extra Repayments Calculator
See how making extra repayments on your loan can reduce your loan term and save you money on interest. Adjust the calculator to see how different repayment strategies affect your loan.
Your Savings Summary
$0
Interest Saved
0 years
Time Saved
30 years
New Loan Term
Repayment Comparison
| Standard Repayments | With Extra Repayments | |
|---|---|---|
| Regular Payment | $0.00 | $0.00 |
| Total Repayments | $0.00 | $0.00 |
| Total Interest | $0.00 | $0.00 |
| Loan Term | 0 years | 0 years |
About Extra Repayments Calculator
Making extra repayments on your loan can significantly reduce the amount of interest you pay and shorten your loan term. This calculator helps you visualize the potential savings from making additional payments on your mortgage, personal loan, or other types of loans.
How Extra Repayments Work
When you make extra repayments:
- The additional amount is applied directly to your loan principal
- Reducing your principal faster decreases the amount of interest charged
- With less interest accumulating, more of your regular payments go toward principal
- This creates a compounding effect that can significantly shorten your loan term
Strategies for Extra Repayments
Consider these approaches to maximize your savings:
- Small, frequent payments: Adding $50-$100 to each regular payment
- Lump sum payments: Applying bonuses, tax refunds, or other windfalls
- Payment frequency: Switching from monthly to fortnightly payments (effectively making one extra monthly payment per year)
- Rate rise buffer: Paying more now to prepare for potential rate increases
Things to Consider
Before making extra repayments:
- Check if your loan has any restrictions or fees for extra repayments
- Compare the interest rate on your loan with potential investment returns
- Ensure you maintain an emergency fund for unexpected expenses
- Consider offset accounts or redraw facilities if you might need access to the funds