Making even small extra payments on your personal loan can save hundreds or thousands of dollars in interest. This calculator shows your exact savings and new payoff date based on any extra monthly payment amount.
Advertiser Disclosure: WiseIQ is an independent comparison service. We may earn a commission when you apply for a financial product through links on this page. This does not influence our editorial evaluations. See our methodology →
Your Loan Details
$
%
$
Your Savings
Interest Saved
—
Months Saved
—
New Payoff Date
—
Original Payoff Date
—
Ready to apply? Check your rate on Upstart
Rates from 6.20% APR · Up to $75,000 · Soft pull, no credit impact
Check My Rate →
Check for Prepayment Penalties FirstMost personal loan lenders — including Upstart, SoFi, LightStream, and Marcus — charge no prepayment penalty. However, some lenders (particularly auto lenders and some mortgages) do charge a fee for paying off early. Always check your loan agreement before making extra payments.
Frequently Asked Questions
Do personal loans have prepayment penalties?
Most major personal loan lenders do not charge prepayment penalties. Upstart, SoFi, LightStream, Marcus, Discover, and LendingClub all allow early payoff at no extra cost. However, some lenders — particularly those serving borrowers with poor credit — may include prepayment clauses. Always read your loan agreement before making extra payments.
How much can I save by paying $100 extra per month?
On a $10,000 loan at 12% APR over 36 months, paying an extra $100 per month saves approximately $380 in interest and pays off the loan about 8 months early. On a larger loan at a higher rate, the savings are proportionally greater. A $20,000 loan at 20% APR over 60 months saves over $3,000 with $200 in extra monthly payments.
Should I pay off my loan early or invest the extra money?
It depends on your loan's APR. If your loan APR is above 10%, paying it off early is almost always the better financial move — it's a guaranteed return equal to your APR. If your loan APR is below 7%, investing in a diversified index fund (historical average ~10% annual return) may produce better long-term results. For most personal loan borrowers with APRs of 12–25%, early payoff is the smarter choice.
Does paying extra reduce my monthly payment or my term?
With most personal loans, extra payments reduce your loan term (you pay off faster) while keeping your required monthly payment the same. The extra payment goes directly to principal, which reduces the balance on which interest accrues. Some lenders allow you to re-amortize the loan to reduce your required payment — contact your lender to ask about this option.
What is the best strategy for paying off a personal loan early?
The most effective strategy is to make one extra payment per year (equivalent to making 13 payments instead of 12). On a 36-month loan, this alone can cut 3–4 months off your term. Alternatively, divide your monthly payment by 12 and add that amount to every payment — this achieves the same effect automatically. Always confirm with your lender that extra payments are applied to principal, not future payments.
Sources & Methodology
WiseIQ's editorial team researches and fact-checks all content using primary sources. Calculator formulas use standard financial mathematics (amortization, compound interest). Data sources include: Consumer Financial Protection Bureau (CFPB) · Federal Reserve G.19 · myFICO · Lender websites (rates verified April 2026).
WiseIQ's editorial team researches and fact-checks all content using primary sources. Calculator formulas use standard financial mathematics (amortization, compound interest). Data sources include: Consumer Financial Protection Bureau (CFPB) · Federal Reserve G.19 · myFICO · Lender websites (rates verified April 2026).