Business Loan Extra Payments Calculator with Extra Payments
This calculator shows how adding recurring extra payments and/or an upfront lump-sum payment affects payoff time and total interest for a business loan. Enter the loan amount, APR, term, payment frequency, and the extra amounts to compare the original schedule with accelerated-payoff scenarios.
Results are estimates that assume a fixed interest rate, fixed scheduled payments, and that extra payments are applied directly to principal when received. Use the method selector to compare recurring extra payments, a single lump-sum principal reduction applied at the loan start, or both combined.
Apply an additional fixed extra payment each scheduled period in addition to the regular amortizing payment.
Inputs
Results
Scheduled payment (no extras)
$1,956.61
Payment with recurring extra
$1,956.61
Payments until payoff (periods)
60
Payoff time (years)
5
Estimated interest saved
-$0.00
Scheduled periods saved
-0
| Output | Value | Unit |
|---|---|---|
| Scheduled payment (no extras) | $1,956.61 | currency |
| Payment with recurring extra | $1,956.61 | currency |
| Payments until payoff (periods) | 60 | periods |
| Payoff time (years) | 5 | years |
| Estimated interest saved | -$0.00 | currency |
| Scheduled periods saved | -0 | periods |
Visualization
Methodology
Calculations use standard amortization mathematics: the scheduled payment is derived from the present value formula for an annuity based on periodic interest rate and number of periods. Recurring extras reduce outstanding principal more quickly, which reduces interest accrual and shortens the payoff horizon.
For one-time lump sums at the start, the lump amount reduces the principal immediately, then remaining payments amortize that reduced principal. The combined method applies the lump sum first and then recurring extras on each subsequent period.
This tool uses closed-form amortization formulas (no stochastic simulation). Results are as accurate as the input assumptions; they do not account for lender fees, prepayment penalties, interest compounding irregularities, or adjustments in scheduled payment amounts due to lender policies.
Worked examples
Example 1: $100,000 loan, 6.5% APR, 5-year term, monthly payments. Adding $200 per month reduces payoff time and cuts total interest — the calculator shows months saved and interest saved.
Example 2: $250,000 loan, 5% APR, 10-year term. A $25,000 lump-sum at start immediately reduces principal; remaining payments amortize over fewer periods and result in interest savings displayed by the tool.
Further resources
External guidance
Expert Q&A
Are results exact?
Results are mathematically precise for the assumptions used (fixed APR, fixed payment schedule, extras applied to principal immediately). Differences can arise if your loan compounds interest differently, your lender re-amortizes payments, or prepayment penalties apply. See accuracy and compliance notes below.
Can I enter biweekly or weekly payments?
Yes. Select the payment frequency (monthly, biweekly, weekly). The calculator converts the APR to the chosen periodic rate and computes periods accordingly.
Does this account for prepayment penalties or fees?
No. This tool does not include lender fees, prepayment penalties, or changes in scheduled payment amounts that some lenders may require after large principal reductions. Always confirm with your lender before making extra payments.
What if I make a lump sum after the loan has started?
This version models a lump sum applied at the loan start. For mid-term lump sums timing effects, consult with your lender or run a separate calculation approximating the remaining principal at that point and treating that as a new 'loan_amount'.
Sources & citations
- National Institute of Standards and Technology (NIST) — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- Institute of Electrical and Electronics Engineers (IEEE) — https://www.ieee.org
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov