Extra Repayment Calculator
Can you afford to repay more than your minimum loan repayment amount? If so, then extra repayment can help you quickly repay a loan. It can possibly help you save thousands of dollars in the form of interest and considerably reduce the loan tenure. With the help of our repayment calculator, you can easily estimate your extra repayment amount.
By doing the necessary number crunching, the extra repayment calculator will tell you how much interest and how many months or years you can potentially knock off by paying extra. All you have to do is determine the extra repayment amount you can comfortably shell out on top of your regular repayments.
Advantages of Extra Repayments
It is advisable to use part of your extra monthly saving towards loan repayments instead of putting it in a recurring or fixed deposit. That’s because the overall interest saved from extra loan repayments will be higher than the overall interest earned from deposits. Here are a few other ways extra repayments can benefit you:
With extra repayments, you will get an opportunity to stop paying interest or at least reduce the repayment amount.
Improve your financial position
Once you pay back your debt quickly, you are in a position to start saving for the future.
Repaying a loan before time makes you an attractive borrower. It also improves your credit score. This means next time you need a loan, the lenders will be more willing to assist you.
Peace of mind
Having a debt to repay is stressful. With extra repayments, you can make life easier for yourself. When you have finally climbed out of your debt, you can leverage various investment opportunities to let your money make more money.
How does the extra repayment calculator work?
When you enter your normal repayment amount and the repayment amount you can afford to pay, the extra repayment calculator calculates the difference. Along with your loan details and this difference amount, the calculator determines the total amount you will save and the length of your new mortgage term.
You can use this extra repayment calculator on all web browsers and operating systems. And it’s free to use. All you need is an active Internet connection.
Determining the new repayment arrangement beforehand means less hassles for you and your lender.