Principal Reduction Extra Payment Calculator

Make extra payments that shrink principal from one. See interest saved and payoff shortened fast. Download reports and schedules for clear decision support always.

Inputs

Enter loan terms and extra payment choices. The calculator compares a standard schedule against your principal-reduction plan.

Total starting principal.
Use your note rate, not APR.
Used to compute the scheduled payment.
Changes payment count and rate per period.
Used for estimated payoff date.
Added to principal every payment from a start point.
Example: 1 means immediately.
Applied once per year on a chosen payment.
For monthly, 1=first month each year.
A single principal reduction event.
Example: 13 means after 12 payments.
What “Full Option” means here
You can model three extra types together: per-payment extras, one-time lumps, and annual lumps. The calculator compares baseline and extra plans using the same scheduled payment.
Reset
Example Data

Sample inputs and outcomes to help you validate settings.

Loan Rate Term Frequency Extra Each Annual Extra One-Time Extra Typical Outcome
$250,000 6.500% 30 years Monthly $150 $1,000 $5,000 at #13 Fewer payments and lower total interest.
$120,000 5.250% 15 years Biweekly $50 $0 $0 Accelerates payoff with small consistent extras.
$60,000 0.000% 5 years Weekly $25 $0 $500 at #10 Principal falls quickly with no interest cost.
Your exact numbers depend on rate, timing, and frequency.
Formula Used
  • Rate per period: r = (annual_rate / 100) ÷ periods_per_year
  • Scheduled payment: PMT = P × r ÷ (1 − (1 + r)−n) (when r > 0)
  • Interest each period: interest = balance × r
  • Principal each period: principal = PMT − interest
  • With extras: new_balance = balance − (principal + extra_principal)
  • Interest saved: baseline_total_interest − extra_plan_total_interest
The schedule iterates period by period until the balance reaches zero. Final payments are capped so the balance never becomes negative.
How to Use This Calculator
  1. Enter your loan amount, rate, and term years.
  2. Select monthly, biweekly, or weekly payments.
  3. Add an extra amount per payment, if desired.
  4. Optionally add annual and one-time extras.
  5. Press Calculate to compare both schedules.
  6. Download CSV or PDF for your records.
Tip: If you know your actual scheduled payment, adjust the term until the payment matches closely.

Payment Frequency and Principal Velocity

Extra principal reduces the balance immediately, so the next period’s interest is computed on a smaller amount. On a $250,000 loan at 6.5% with monthly payments, adding $150 each payment plus a $1,000 annual extra can remove several years from the schedule. Biweekly payments increase the number of payment events per year, which accelerates principal turnover even with the same nominal rate.

Early Extras and Compounding Interest Savings

Interest savings are driven by timing. A $5,000 one‑time extra in payment 13 attacks the balance early, when interest share is highest. If the same $5,000 is delayed to year five, the remaining balance is already lower, so the incremental savings typically shrink for most borrowers. Use the schedule preview to confirm when interest drops below principal and to spot the payoff inflection.

Baseline vs. Extra Plan Comparison Logic

This calculator uses a fixed scheduled payment from the standard amortization formula, then layers extra principal on top. The baseline path holds extras at zero, while the extra plan applies your per‑payment, annual, and lump‑sum choices together. The final payment is capped so the balance never becomes negative. Export the CSV to audit totals, reconcile statements, and share scenarios with lenders over time accurately.

Cash-Flow Planning and Lender Posting Rules

Frequency changes cash‑flow rhythm. Monthly makes budgeting predictable, while weekly or biweekly can align with payroll and shorten the time between interest calculations. For example, a 15‑year loan at 5.25% with $50 extra biweekly often pays off meaningfully earlier than the same extra applied monthly, because the balance is reduced more frequently. Always verify your lender credits extras to principal in many budgets.

Tracking Progress with Exports and Targets

Use results to set a target and track progress. Start with an extra amount you can sustain, then test an annual extra tied to bonuses or tax refunds. Compare “payments saved” against your goal date and confirm interest saved. If your rate is 0%, extras reduce duration, not cost. Re‑run scenarios when rates, income, or priorities change, and update your plan to stay on course.

FAQs

Does extra principal change my scheduled payment amount?

Yes. The scheduled payment is computed from your loan terms. Extra amounts are added separately and applied to principal, so payoff can shorten and interest can fall.

What interest rate should I enter?

Use your note rate as a nominal annual percent. The calculator divides it by payments per year to get the per‑period rate used in the schedule.

Why is the start date optional?

Enter a start date to estimate payment dates and payoff date. Without it, the schedule still computes payments and totals, but dates display as dashes.

How do annual and one-time extras work together?

Set extra each payment and the start payment number. You can also add a once‑per‑year extra on a chosen payment number and a one‑time lump sum on any payment.

Will my lender apply the extra to principal automatically?

Most servicers apply verified extra funds to principal, but rules vary. Confirm how to label the payment, whether there is a prepayment penalty, and how escrow is handled.

What do the CSV and PDF downloads include?

The CSV exports every row of the schedule. The PDF exports a compact summary you can share, print, or archive with your loan documents.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.