Pay Off $500 Faster With $20 Extra/Month
Adding $20 extra per month to a $500 balance at 12% saves 43 months and $119.51 in interest.
How This Works
Extra payments go straight toward principal, which reduces the balance interest is charged on going forward — so even modest extra payments compound into significant time and interest savings over a loan's life.
Formula
Example
On a $10,000 balance at 18% APR, adding $100/month in extra payments can save well over a year of payments and hundreds of dollars in interest.
Frequently Asked Questions
How much does $20 extra per month save on a $500 balance?
It saves 43 months and $119.51 in interest.
Should I always pay extra toward debt?
Generally yes for high-interest debt, but weigh it against building an emergency fund and matching any employer retirement contributions first.