Effect of lump sum deposit to loan calculator

Alternative name: extra deposit loan calculator, reduce repayment time loan calculator, extraordinary deposit on loan calculator

The effect of an additional deposit on a loan can be significant. For example, if you make a one-time deposit of 200,000 on a 1,000,000 loan with a 30-year repayment period, you will save approximately 13 years given an interest rate of 7%. This calculator can be used to find the reduced repayment period an additional payment will constitute. The calculator can be used on annuity loans such as mortgages, credit loans, etc. where a fixed annual interest rate is used.

When you make an extra payment on your mortgage, you reduce not only the remaining repayment period, but also the monthly interest costs. The effect of additional payment on the loan will be greater with higher interest rates and with a longer initial repayment period.

If your monthly repayment amount is lower than the interest rates on the loan, you will never be able to repay the loan, so be sure to enter your figures (or at least realistic figures). If not, the calculator will not be able to calculate your new payback time.

Remember that if you make an extra payment on the mortgage with savings, you will lose the interest gain if you do not ask the bank to keep the original term amount.

Also be aware that if you have a mortgage with over 80% loan-to-value ratio, and house prices fall then it can be difficult to increase the loan (refinance). If you are in this situation, it may be a good idea to save a buffer before any additional payment on the loan.

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Calculator results

Current time left: 18 years
Time left if you deposit the lump sum 15 years 2 months