See how much sooner you could finish a bike or car loan, and how much markup you could save, by paying extra. Enter the amount financed, the yearly rate and the number of months from your loan, then an extra amount to pay every month, a one-time extra payment, or both. The calculator shows your normal instalment, the months you would save and the markup you would avoid.
You supply every figure. This tool uses the reducing balance method only and does not suggest a rate.
Use the figures from your own loan. This tool uses the reducing balance method only and does not suggest any rate. Ask your lender whether extra payments are allowed and what they cost.
Nothing you type is stored or sent anywhere. Results are calculated from the numbers you enter.
How to use the extra payment calculator
- Enter the amount financed, the yearly rate and the number of months from your loan agreement or your lender’s offer.
- Enter an extra amount you could pay every month, a one-time extra payment, or both. For a one-time payment, also enter the month number in which you would pay it, counting from the first instalment.
- Press “Calculate savings”.
How the results are worked out
- Normal instalment = amount financed × monthly rate ÷ (1 − (1 + monthly rate)−months), where the monthly rate = yearly rate ÷ 100 ÷ 12
- Each month the markup is charged on the balance still owed. Your instalment plus any extra payment is then taken off the balance.
- Months to finish = the number of months until the balance reaches zero. The last payment is only as large as what is still owed.
- Markup saved = total markup without extra payments − total markup with them
Worked example (made-up numbers, not an offer)
Take Rs. 500,000 financed over 36 months at a yearly rate of 20%. The normal instalment is about Rs. 18,582 and the total markup is about Rs. 168,945.
- Extra Rs. 5,000 every month: the loan finishes in 27 months, 9 months sooner, and the markup falls to about Rs. 122,067, saving about Rs. 46,877.
- One-time extra Rs. 100,000 in month 6: the loan finishes in 28 months, 8 months sooner, and the markup saved is about Rs. 54,413.
These figures only show how the calculation works. They are not a real quote.
What this calculator does not include
- Any fee, charge or rule your lender applies to early or extra payments. Some lenders do not allow them, or charge for them.
- Loans quoted on a flat rate. Lenders may work out the markup differently, so the savings on such a loan can differ from what is shown here.
- Processing and documentation fees, insurance or takaful, registration and tax, and late-payment charges.
- Any rate or lender term. We have not verified any such figures for this page, so it shows none.
Next steps
Work out your instalment with the bike installment calculator or the car installment calculator. Before you borrow, check what you can afford with the vehicle affordability calculator and plan the down payment with the vehicle down payment savings planner. Selling the vehicle before the loan ends? Check the cash you would receive with the vehicle sale proceeds calculator.
Vehicle loan extra payment calculator FAQs
Does paying extra always save markup?
On a reducing balance loan, an extra payment lowers the balance the markup is charged on, so it usually does. Your lender’s terms decide whether extra payments are allowed and what they cost, so ask before you pay.
What if my loan uses a flat rate?
This calculator uses reducing balance only. With a flat rate the markup is fixed at the start, and early settlement is handled by the lender’s own rules, so ask your lender how they would treat an early payment.
What does the one-time payment month mean?
It is the instalment number in which you pay the extra amount. Month 1 is the first instalment.
Is my data stored?
No. The calculation runs in your browser, and nothing you enter is sent to our servers.