Principal sum

Additional and lump sum payment calculator


A home loan is probably the biggest expense you will ever have to pay. While the house itself will cost at least several hundred thousand dollars, the interest component of this loan could easily add a few hundred thousand dollars more. An average home loan can last 25 to 30 years, which is a long time to pay off. The longer the term of the loan, the more you will have to pay.

But what if there was a way to shorten your mortgage term and save on interest? By making an additional lump sum payment on your loan, you can.

Any additional repayments you make – whether lump sum repayments or recurring repayments above the minimum – can save you money just because it reduces the loan principal i.e. the amount borrowed remaining to be repaid. Interest is charged on this principle amount, so the smaller the principal, the less interest there is to pay.

In addition, the more you repay, the faster you will repay the loan. Our mortgage loan supplement and lump sum payment calculator can show you what a difference the supplemental payments can make to your overall loan.

All you need to do with our additional reimbursement / lump sum calculator is:

  • Enter loan amount and loan term (loan term)
  • Enter the interest rate for your loan
  • Enter your repayment frequency
  • Enter the amount of your additional lump sum payment or the additional amount you will pay per month
  • Specify how far in the loan schedule you will make these additional repayments

Let’s say you have a 25-year, $ 400,000 home loan at an interest rate of 3.50%. Using our lump sum repayment calculator, you can estimate that a one-time payment of $ 25,000 on your home loan could save you 21 months and $ 17,500 on your home loan.

Using our supplemental repayment calculator, if you started paying an extra $ 200 per month for that same home loan, you could save over 4 years and $ 38,000.

So if you’ve received a little extra money recently (like a work bonus or an inheritance) or just want to get ahead on your loan, use our extra repayment and lump sum calculator to see how much. you could save money by using that money to pay off your mortgage.