1. What is the Additional Home Loan Repayment Calculator?

This calculator helps you understand how making extra payments on your home loan can reduce your loan term and total interest paid. It uses the standard loan payment formula adjusted for additional repayments.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of months in loan term
• \( PMT \) — Monthly payment amount

For extra payments: The calculator recalculates the loan term based on your additional monthly payment amount.

3. Importance of Extra Repayments

Details: Even small additional payments can significantly reduce your loan term and total interest paid. This calculator shows you exactly how much you can save.

4. Using the Calculator

Tips: Enter your loan amount, interest rate, and term. Then add any additional monthly payment you plan to make. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with extra payments?
A: Even $100 extra per month can save thousands in interest and reduce your loan term by years, depending on your loan details.

Q2: Should I pay extra principal or refinance?
A: This depends on your interest rate and how long you plan to stay in the home. This calculator helps compare options.

Q3: Are there prepayment penalties?
A: Some loans have prepayment penalties - check your loan documents before making extra payments.

Q4: How often should I make extra payments?
A: Regular extra payments (monthly) have the greatest impact, but even annual lump sums help.

Q5: Does this account for changing interest rates?
A: No, this assumes a fixed rate. For adjustable rate loans, results would vary as rates change.