Extra Payment / Early Payoff Calculator

Should I make extra mortgage payments?

Enter your loan amount, interest rate (APR), term and an extra amount to add each month. The calculator compares your original payoff schedule against an accelerated one and shows the months saved and the total interest saved, with a chart of how your balance falls to zero sooner.

Why early extra payments help most

• Front-loaded interest: early in a loan most of each payment is interest, so extra principal then has the biggest impact.
• Compounding savings: a lower balance means lower interest every month thereafter.
• Guaranteed return: prepaying effectively earns your mortgage rate, risk-free.

Estimates use the standard amortization formula and assume the extra amount is applied to principal each month. Confirm your loan has no prepayment penalty.

Frequently Asked Questions

How do extra payments pay off a mortgage faster?

Any amount above your regular payment goes straight to principal. A smaller balance accrues less interest each month, so more of every future payment also attacks principal — a compounding effect that can cut years off the loan.

How much interest can I really save?

It depends on your rate, balance and how early you start, but on a typical 30-year loan even $100–$200 extra per month can save tens of thousands of dollars and shave several years off the term. Enter your numbers to see the exact figure.

Is it better to pay extra or invest the money?

Paying extra gives a guaranteed return equal to your mortgage rate. If you can reliably earn more after tax in investments, investing may win; if not, prepaying is a safe, guaranteed saving. Many people do a mix.

Will extra payments lower my monthly payment?

No. On a fixed-rate mortgage, extra principal shortens the term but the required monthly payment stays the same unless you formally recast or refinance the loan. The benefit shows up as an earlier payoff date and less total interest.

Are there prepayment penalties?

Most U.S. conforming mortgages have no prepayment penalty, but some loans do. Check your loan documents before making large extra payments. This tool does not include any penalties.