Adding even a small extra amount to your monthly loan payment can cut years off your payoff timeline and save thousands in interest. See the exact impact here.
Even modest extra payments can save significant interest because they reduce principal faster, which lowers the interest charged in every subsequent period — the earlier in the loan you add extra payments, the bigger the savings.
Some loans, particularly certain personal and auto loans, carry prepayment penalties. Always check your loan agreement before making large extra payments.