See exactly what one extra payment a month actually saves you — in time and in dollars.
This calculator assumes a fixed interest rate and consistent payments with no new charges added. Actual results can vary with rate changes or missed payments. Not financial advice.
A minimum payment on a high-rate debt often barely outpaces the interest — a large share of it just covers what accrued that month. An extra payment skips that entirely: it goes straight to principal, which means every future month accrues interest on a smaller balance. That compounding effect is why a relatively small extra amount can save disproportionately more in total interest, especially on higher-rate debts.
Yes, often more than people expect, because every extra dollar goes straight to principal and stops accruing interest for every remaining month of the loan. Even a modest extra payment can cut months off a high-rate balance.
It depends on the interest rate versus what savings could earn elsewhere. Paying extra on a high-rate debt is often a better guaranteed return than most savings accounts, though keeping a small emergency cushion first is generally recommended before aggressively paying down debt.