Extra Mortgage Payment Calculator: Pay Off Your Loan Faster
An extra $100 or $200 a month does not sound like much. Over 30 years it can be a small fortune.
Extra payment payoff calculator
Estimates for learning only — not a loan offer. Real numbers come from a lender's Loan Estimate.
Why extra payments are so powerful
Interest is charged on your remaining balance. Every extra dollar you pay goes straight to principal, which means less interest next month, and the month after, and so on. The effect snowballs.
ExampleOn a $300,000 loan at 6.5% over 30 years, adding $200 a month cuts the payoff time by roughly six to seven years and saves more than $100,000 in interest.
Before you prepay, check these
- Do you have an emergency fund of a few months of expenses?
- Are you paying off high-interest debt like credit cards first?
- Does your loan have a prepayment penalty? Most modern loans do not, but check.
- Tell your servicer the extra money should go to principal.
Quick questions
Is biweekly payment the same thing?
Paying half your payment every two weeks adds up to one extra full payment per year. It works the same way as adding about 1/12 of a payment each month.
Should I prepay or invest?
It depends on your rate and risk comfort. Prepaying is a guaranteed return equal to your mortgage rate; investing may earn more but is not guaranteed.
More free tools: see all calculators.