Fidamen

Business Loan Extra Payments Calculator with Extra Payments

This calculator shows how adding recurring extra payments and/or an upfront lump-sum payment affects payoff time and total interest for a business loan. Enter the loan amount, APR, term, payment frequency, and the extra amounts to compare the original schedule with accelerated-payoff scenarios.

Results are estimates that assume a fixed interest rate, fixed scheduled payments, and that extra payments are applied directly to principal when received. Use the method selector to compare recurring extra payments, a single lump-sum principal reduction applied at the loan start, or both combined.

Updated Nov 7, 2025QA PASS — golden 25 / edge 120Run golden-edge-2026-01-23

Governance

Record 1875080fee80 • Reviewed by Fidamen Standards Committee

Apply an additional fixed extra payment each scheduled period in addition to the regular amortizing payment.

Inputs

Results

Updates as you type

Scheduled payment (no extras)

$1,956.61

Payment with recurring extra

$1,956.61

Payments until payoff (periods)

60

Payoff time (years)

5

Estimated interest saved

-$0.00

Scheduled periods saved

-0

OutputValueUnit
Scheduled payment (no extras)$1,956.61USD
Payment with recurring extra$1,956.61USD
Payments until payoff (periods)60periods
Payoff time (years)5years
Estimated interest saved-$0.00USD
Scheduled periods saved-0periods
Primary result$1,956.61

Visualization

Methodology

Calculations use standard amortization mathematics: the scheduled payment is derived from the present value formula for an annuity based on periodic interest rate and number of periods. Recurring extras reduce outstanding principal more quickly, which reduces interest accrual and shortens the payoff horizon.

For one-time lump sums at the start, the lump amount reduces the principal immediately, then remaining payments amortize that reduced principal. The combined method applies the lump sum first and then recurring extras on each subsequent period.

This tool uses closed-form amortization formulas (no stochastic simulation). Results are as accurate as the input assumptions; they do not account for lender fees, prepayment penalties, interest compounding irregularities, or adjustments in scheduled payment amounts due to lender policies.

Worked examples

Example 1: $100,000 loan, 6.5% APR, 5-year term, monthly payments. Adding $200 per month reduces payoff time and cuts total interest — the calculator shows months saved and interest saved.

Example 2: $250,000 loan, 5% APR, 10-year term. A $25,000 lump-sum at start immediately reduces principal; remaining payments amortize over fewer periods and result in interest savings displayed by the tool.

F.A.Q.

Are results exact?

Results are mathematically precise for the assumptions used (fixed APR, fixed payment schedule, extras applied to principal immediately). Differences can arise if your loan compounds interest differently, your lender re-amortizes payments, or prepayment penalties apply. See accuracy and compliance notes below.

Can I enter biweekly or weekly payments?

Yes. Select the payment frequency (monthly, biweekly, weekly). The calculator converts the APR to the chosen periodic rate and computes periods accordingly.

Does this account for prepayment penalties or fees?

No. This tool does not include lender fees, prepayment penalties, or changes in scheduled payment amounts that some lenders may require after large principal reductions. Always confirm with your lender before making extra payments.

What if I make a lump sum after the loan has started?

This version models a lump sum applied at the loan start. For mid-term lump sums timing effects, consult with your lender or run a separate calculation approximating the remaining principal at that point and treating that as a new 'loan_amount'.

Sources & citations

Further resources

Versioning & Change Control

Audit record (versions, QA runs, reviewer sign-off, and evidence).

Record ID: 1875080fee80

What changed (latest)

v1.0.0 • 2025-11-07 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Public QA status

PASS — golden 25 + edge 120

Last run: 2026-01-23 • Run: golden-edge-2026-01-23

Engine

v1.0.0

Data

Baseline (no external datasets)

Content

v1.0.0

UI

v1.0.0

Governance

Last updated: Nov 7, 2025

Reviewed by: Fidamen Standards Committee (Review board)

Credentials: Internal QA

Risk level: low

Reviewer profile (entity)

Fidamen Standards Committee

Review board

Internal QA

Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person

Semantic versioning

  • MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
  • MINOR: New features or fields that do not change existing outputs for the same inputs.
  • PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.

Review protocol

  • Verify formulas and unit definitions against primary standards or datasets.
  • Run golden-case regression suite and edge-case suite.
  • Record reviewer sign-off with credentials and scope.
  • Document assumptions, limitations, and jurisdiction applicability.

Assumptions & limitations

  • Uses exact unit definitions from the Fidamen conversion library.
  • Internal calculations use double precision; display rounding follows the unit's configured decimal places.
  • Not a substitute for calibrated instruments in regulated contexts.
  • Jurisdiction-specific rules may require official guidance.

Change log

v1.0.0 • 2025-11-07 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: ecc64fde133c