Loan Prepayment Calculator (USA)

Use our Loan Prepayment Calculator to estimate how much you can save by making early repayments on your loan. Calculate reduced interest, shorter loan tenure, and maximize your financial benefits!

Loan Information
$
%
Yrs
Mos
Total: 60 months
$
Calculated based on loan details
Prepayment Options
$
When to start prepayments

About Loan Prepayments

Interest Savings: Prepaying principal reduces the outstanding balance, which in turn reduces the amount of interest that accrues over time.

Shorter Loan Term: Regular prepayments can significantly reduce the total duration of your loan.

Improved Debt-to-Income Ratio: Paying off loans faster improves your financial profile.

Peace of Mind: Being debt-free sooner provides financial security and flexibility.

Mortgages: Consider biweekly payments (26 half-payments per year equals 13 full payments) or annual lump-sum prepayments.

Auto Loans: Even small additional principal payments each month can save hundreds in interest.

Student Loans: Target loans with the highest interest rates first (avalanche method) or smallest balances first (snowball method).

Personal Loans: Check for prepayment penalties, then make additional payments when possible.

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Current Loan Rates (USA)
Loan Type Avg. Rate Term
30-Year Mortgage 6.5% - 7.5% 30 years
15-Year Mortgage 5.75% - 6.5% 15 years
New Auto Loan 5.0% - 7.0% 5 years
Used Auto Loan 6.0% - 8.0% 4 years
Personal Loan 8.0% - 12.0% 3-5 years
Federal Student Loan 4.99% - 7.54% 10-25 years
Rates as of July 5, 2025. Rates vary by lender and credit score.
Prepayment Savings Examples

Adding $200/month:

  • Saves $72,000 in interest
  • Pays off 7 years early

Adding $100/month:

  • Saves $1,800 in interest
  • Pays off 1.5 years early

Adding $150/month:

  • Saves $9,000 in interest
  • Pays off 5 years early
Prepayment Tips
  • 1. Specify "apply to principal" with payments
  • 2. Check for prepayment penalties
  • 3. Target highest interest loans first
  • 4. Even small amounts make a difference
  • 5. Automate extra payments if possible