Compare total interest between two loan term lengths.
Both terms are priced with the monthly payment formula, and the interest saved is the difference in total interest paid. A shorter term raises the payment but demolishes interest, and seeing both numbers side by side clarifies the trade-off.
Loan Interest Savings
Payment = amount x rate / (1 - (1 + rate)^-months); interest = total paid - amount
Payment = amount x rate / (1 - (1 + rate)^-months); interest = total paid - amount Both terms are priced with the monthly payment formula, and the interest saved is the difference in total interest paid.
A shorter term raises the payment but demolishes interest, and seeing both numbers side by side clarifies the trade-off.
This calculator takes 4 inputs: Loan amount, Interest rate, Current term, Shorter term. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.