Two strategies
Reduce term: keep paying more each month and finish sooner with less total interest. Reduce payment: make a lump-sum prepayment and recalculate a lower monthly payment for the same remaining term.
Calculations are estimates only and do not constitute financial, tax, or legal advice. Verify current rules with official sources or a qualified professional before making decisions.
Early Mortgage Repayment Calculator
Estimate interest savings from extra mortgage payments — reduce term or reduce monthly payment after a lump sum.
Results
Interest saved
AMD 7 174 709
New payment
AMD 220 000
New term
108 mo. (9.0 years)
Interest before / after
AMD 15 822 589 → AMD 8 647 880
How savings are estimated
We compare remaining interest under current terms vs after prepayment. Banks may apply their own fees and recalculation rules.
Example
Balance 15,000,000 AMD, 11% rate, 15 years left, payment 170,000 AMD. Adding 50,000 AMD monthly under the reduce-term strategy can save substantial interest and shorten the loan.
Practical tips
- Check whether your bank charges prepayment penalties.
- High-interest consumer debt may be worth paying first.
- Keep a 3–6 month emergency reserve before aggressive prepayment.
Frequently asked questions
Reducing term usually saves more interest. Reducing payment lowers monthly pressure.
Most banks require a prepayment application and a chosen recalculation method.
You can mix lump sums and recurring extra payments. This tool models one scenario at a time.