REPAYMENT STRATEGY

Lump sum or recurring extra payment?

A lump-sum payment reduces principal immediately. A recurring payment spreads your extra cash over time while allowing you to preserve more flexibility today.

When a lump sum can fit

It may be useful when you have surplus cash after keeping an appropriate emergency fund and your loan permits an extra principal payment without an unattractive penalty.

When recurring payments can fit

A recurring plan can match a stable monthly cash surplus. It can also be easier to pause if income changes. In the calculator, set the interval and the extra amount to see a projected payoff date.

Compare like for like

Use the same total extra amount in both scenarios. Then compare interest avoided, term reduction, fee treatment and how much liquidity you keep.