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See exactly how much interest you save and how many years you cut by making extra payments on your mortgage. Free, no sign-up required.
Every extra dollar you pay toward your mortgage goes directly to reducing your principal balance. A lower principal means less interest accrues each month, which means more of your regular payment goes to principal — creating a compounding acceleration effect.
This calculator simulates your loan month by month, applying your extra monthly payment, annual lump sum, and one-time payment to see exactly when you pay off and how much interest you save.
On a $300,000 mortgage at 6.5% APR with 25 years remaining:
Even small extra payments save significant interest. An extra $200/month on a $300,000 loan at 6.5% APR saves approximately $87,000 in interest and cuts the loan term by about 7 years. Use the calculator above to see your exact savings.
The most effective strategies: (1) Add a fixed extra amount to every monthly payment. (2) Make one extra full payment per year. (3) Apply windfalls (tax refunds, bonuses) as lump-sum payments. All three reduce principal directly, saving the most interest.
If your mortgage rate is above 6-7%, paying it down often beats investing in bonds but may trail stock market returns. If your rate is below 4%, investing the difference in index funds historically yields better returns. Consider your risk tolerance and peace of mind.
No - extra payments on a standard fixed-rate mortgage reduce your loan balance and term, but your required monthly payment stays the same. The benefit is paying off faster and paying less total interest. Some lenders offer recasting which can lower your payment after a large lump sum.
Always specify that extra payments should be applied to principal, not future payments. Contact your lender or servicer to confirm their process. Many online portals have a principal payment option. Keep records and verify your balance decreases accordingly.
Estimate monthly payment, total interest, and full amortization schedule.
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Track how paying off your mortgage grows your net worth.
Educational purposes only. Not financial advice. Consult a licensed mortgage professional for personalized guidance.
