Extra Payment Calculator
See how paying a little extra each month can save you years and thousands in interest.
Interest Saved
$105,429
Time saved: 6 yr 7 mo
Before vs. After
💡 Plain English: Paying an extra $200/month on your $320,000 loan saves you 79 months (6 years) of payments and $105,429 in total interest. Even small extra payments make a huge difference because every extra dollar goes straight to reducing your principal.
About the Extra Payment Calculator
Adding even a small extra amount to your monthly mortgage payment can shorten your loan and save thousands in interest. This calculator shows exactly how much faster you pay off your loan and how much interest you avoid by paying extra.
How this calculator works
Enter your loan amount, interest rate, original term, and the extra amount you add each month. The calculator compares your original payoff schedule to the accelerated one and shows the months and dollars saved.
The math, in plain English
Each month, the extra payment is applied directly to principal. This reduces the balance faster, which lowers future interest charges, creating a compounding effect that shortens the loan term.
Key terms
- •Extra payment — any amount paid above your required monthly payment
- •Principal reduction — lowering your loan balance faster than scheduled
- •Interest savings — the total interest you avoid by paying the loan off sooner
Tips & things to know
- ✓Even $50–$100 extra per month can knock years off a 30-year mortgage.
- ✓Specify that extra payments apply to principal, not future interest.
- ✓Making one extra full payment each year has a similar effect to a slightly higher monthly extra.
Frequently asked questions
Is it better to pay extra or refinance?+
Paying extra has no closing costs and is flexible; refinancing can lower your rate but costs money upfront. Compare both with the break-even calculator.
Will my lender penalize extra payments?+
Most modern loans allow extra principal payments without penalty, but check for any prepayment penalty clause in your mortgage.
This calculator is for educational purposes only and uses estimates. Always consult a licensed mortgage professional for advice specific to your situation.