<prompt> Human: Curious as to how this works. I have a co-worker who insists that paying my auto and student loans off early is not altering my monthly interest payment. How would I tell this?Assume that I had 100k in either loan at 5 APR, then after month 1, I had to pay 1000 a month so 583 went to principal and 417 went to interest. Now halfway through month 1, I put 95,000 down on my loan bringing the balance way down.Would my month 2 payment on said loan still be 586 to principal and 414 to interest or would that ratio be recalculated due to the fact that I paid off a huge chunk of the loan.How would I figure out in reality what my loans actually do for a question like this? Thanks in advance.Edit: talked to my providers based upon feedback and paying ahead is lowering my payment toward interest per month as expected.  <response>: I have a co-worker who insists that paying my auto and student loans off early is not altering my monthly interest payment.Your co-worker is not correct. The amount of interest charged is based upon your outstanding balance. If your outstanding balance goes down because you paid more in the prior month, then the next months payment would have less interest.Perhaps your co-worker was trying to say that the total amount of your payment would not change, because that is true. You would pay less interest and more principal, leaving your total monthly payment the same. Your monthly payment would not go down -- your monthly payments would just end sooner once you have paid off the balance.Disclaimer: This is true for most loans. However, loans can have all sorts of different terms, so it would depend upon the specific terms of your loan.In addition, some loans charge a penalty if you pay early, so you would need to verify that. 