How does the Term Loan Calculator handle extra payments?

A Term Loan Calculator can effectively handle extra payments, allowing you to see the impact of making additional payments on your loans. Here is how it typically works:

• Input Extra Payment Amount: You can specify the amount you intend to pay in addition to their regular monthly payments.
• Recalculate Loan Parameters: The calculator adjusts the loan's amortisation schedule based on the extra payment. This includes recalculating the monthly EMI, total interest payable, and the overall loan term.
• Output Results: After processing the extra payment information, the calculator displays:

1. The revised monthly payment amount.
2. The new total interest saved due to the extra payments.
3. A potential new payoff date, showing how much sooner the loan can be paid off.

It is important to note that some lenders may charge prepayment penalties for paying off a loan early.