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Extra Mortgage Payment Calculator

Find out how much sooner you would pay off your loan, and how much interest you would save, with a regular extra payment, a one-time lump sum, or both.
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Interest saved

$124,438

Paid off 7 years 3 months sooner

  • New payoff date22 years 9 monthsJuly 2049
  • Original payoff date30 yearsOctober 2056
  • Scheduled payment (principal and interest)$2,052.64
  • Total interest with extra payments$314,508
  • Total interest without$438,947

Assumes every extra dollar is applied to principal and the rate does not change.

Interest saved

$124,438

Details

Why small extra payments make a large difference

Interest is charged on your balance each month. Paying principal early lowers every later interest charge, so the benefit compounds. On a 30-year loan, an extra amount equal to about one-tenth of the payment can cut years off the term and tens of thousands of dollars of interest.

The effect is biggest early in the loan, when the balance is large and most of each payment is interest. The same extra payment made in year 20 saves much less.

Before you send extra money

Make sure it is applied to principal, not to next month's payment, and that your loan has no prepayment penalty. Compare the guaranteed return of paying down a loan to other uses of the money, such as building an emergency fund or paying off higher-rate debt.

Frequently asked questions

Is it better to pay extra every month or one lump sum?

Earlier money saves more interest, so a lump sum made now beats the same total spread over later months. A regular extra amount is easier for most budgets and still saves a lot.

Do extra payments lower my monthly payment?

Not usually. The scheduled payment stays the same and the loan ends sooner. To lower the payment, you would ask your lender to recast the loan.

Should I pay extra or invest instead?

Paying down the loan earns a certain return equal to your mortgage rate, with no risk. Investments may earn more or less. The right choice depends on your rate, other debts, savings and comfort with risk.

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Estimates for education and planning only. TotalMonthly is not a lender or advisor; confirm figures with a licensed professional. See the methodology and disclaimer.