Faster payoff, yearly lump sum or monthly?

[Chris Hill]

I have a goal to pay off a large loan in 10 years. Let’s say I have 10K available to put towards extra principal every month. Would I end up paying the loan off faster if I did one lump sum payment of 120K per year, or doing 10k every month? Seems like with amortization it makes some difference. Is there any difference or is it the same?  Does one get me there faster?

[Matthew M.]

@Chris Hill mathematically it would be faster to pay off 10k per month than save up 120k/year and throw it at the loan at the end of the year. Basically the quicker you pay down the principal the less principal available to accrue interest on. I’m certain Calculators online can show you the delta.