Mortgage & Housing

Extra Mortgage Payment Calculator

See exactly how much interest you can avoid paying.

Loan Details

$
%
$

Year 1 = start from month 1. Year 5 = start at the beginning of year 5.

Extra Payment Strategy

Mortgage & Housing

Save$103,449in interest and pay off 6 yr 11 mo sooner

Total Interest (Standard)

$382,633

Total Interest (With Extra)

$279,185

Standard Payoff Time

30 yr

New Payoff Time

23 yr 1 mo

Balance Over Time

Standard pace
With extra payment

Estimates based on your inputs. Actual results may vary. Terms →

Frequently asked questions

What to calculate next

Mortgage Payoff

See exactly how to become mortgage-free years sooner.

Should I Refinance?

Compare your current rate with a new loan and find your break-even point.

Rent vs Buy

Find out if buying a house makes more financial sense than renting.

Where your savings come from

Every extra dollar you pay goes directly to principal. This reduces the balance that interest is calculated on — every month, for the rest of the loan.

High Interest Balance
→
Accelerated Principal Reduction

Best ways to reduce mortgage interest

Monthly extra

Small amounts, compounding effect over time

Annual lump sum

Tax return or bonus — one payment, years of savings

Refinancing →

If rates dropped 1%+, may beat extra payments

Extra payment vs. investing — which wins?

Extra Payment

Guaranteed return = your mortgage rate

If your rate is 6.5%, extra payment = guaranteed 6.5% return

Investing

Historical S&P ~7-10% average, but not guaranteed

Market volatility means short-term risk, long-term reward

Bottom line

Rate > 5%: extra payments often win
Rate < 4%: investing likely wins
Between 4-5%: personal preference

This tool helps you compare scenarios and understand trade-offs. Your actual results depend on your loan terms, payment timing, and lender policies.