Ever wondered how much quicker you could pay off your loan if you made regular extra repayments? For instance, if you regularly buy take away – by giving up only one day a week you could afford to pay an extra $100 per month off your loan! With a loan of $200,000 at an interest rate of 6.80% that could cut four years off a 25 year loan and save you up to $38,000 in interest.Step One:
Enter your loan amount, the original term of your loan (usually 30 years) and the percentage rate.
Step Two: Click the button to calculate the monthly repayments based on your original term. Then, enter how much extra you think you can pay per month (eg: if your monthly payments are $600 and you think you can afford to pay $800 then enter 200 in the extra repayments field)
Step Three: Click the Calculate New Term button to find out how long your loan will take to pay off based on your regular extra repayments and how much interest you will save.