Extra Payment Calculator
See how adding extra money to your mortgage each month, once a year, or as a one-time payment could cut your interest and shorten your loan.
How Extra Payments Shorten Your Loan
Any amount you pay beyond your required payment goes straight to principal. A lower balance means less interest next month, so more of each later payment goes to principal as well. The effect builds over time, which is why extra payments made early in the loan save the most.
Enter your loan details and the extra amount you plan to pay each month, once a year, or as a single lump sum. The calculator shows your new payoff date and total interest saved. When you send extra money, tell your servicer to apply it to principal.
Example: On a $500,000 loan at 6.5% for 30 years, adding $300 a month pays the loan off about six and a half years early and saves roughly $160,000 in interest.
Common Questions
Should I pay extra on my mortgage or invest the money?
Paying down a 6.5% loan is a guaranteed return of 6.5%. Whether investing is better depends on your other debts, your emergency savings, and your comfort with risk.
Do extra payments lower my monthly payment?
Not on a fixed-rate loan. Your required payment stays the same and the loan ends sooner. To lower the payment you would ask the servicer to recast the loan or refinance.
What is a mortgage recast?
After a large principal payment, some servicers will recalculate your payment on the lower balance for a small fee, keeping your rate and term.