// by seankriegler.com
Lump Sum Prepayment Calculator
See how extra payments reduce your loan term and total interest
One-time extra payment
Additional amount each month
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Original Payoff
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New Payoff
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Time Saved
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Interest Saved
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Original Interest
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New Interest
// Power of Prepayment
A $50,000 lump sum on a $300,000 mortgage at 6.5% can save you over $100,000 in interest and cut years off your loan. Every extra dollar goes directly to principal.
// Lump vs Monthly
A large lump sum saves more interest sooner because it reduces principal immediately. Extra monthly payments compound over time. Both are powerful strategies.
// Check Penalties
Some loans have prepayment penalties, especially in the first few years. Check your loan terms before making large extra payments. Many modern loans allow penalty-free prepayment.
// Invest vs Prepay
If your mortgage rate is 6% and investments return 8%, investing the extra money may yield more — but paying down debt is risk-free. Consider your risk tolerance.