Extra Payment Calculator
Free mortgage payoff calculator. See how making extra monthly principal payments shortens your loan and how much interest you save — and exactly how many years sooner you'll be mortgage-free.
Paying an extra $200.00 a month pays your loan off 6 yrs 11 mo sooner and saves $103,448.79 in interest.
How extra mortgage payments save you money
Every extra dollar you pay goes straight to your principal — the balance interest is charged on. Shrinking that balance faster means less interest accrues every month after, which both shortens the loan and cuts the total interest you pay, often by tens of thousands of dollars.
Is it better to pay extra or invest?
It depends on your mortgage rate versus the return you’d expect investing. Paying down a 7% mortgage is a guaranteed 7% return; if you can reliably earn more after tax elsewhere, investing may win. Many people do a mix, and the guaranteed, risk-free payoff of extra principal is hard to beat for peace of mind.
Do I need to tell my lender?
Usually you just add the extra to your normal payment and note it should go to principal. Confirm your loan has no prepayment penalty — most modern mortgages don’t.
Frequently asked questions
How much can extra payments save me?⌄
It depends on your rate and balance, but even $100–$200 extra a month on a typical mortgage can shave years off the loan and save tens of thousands in interest. The calculator shows your exact numbers.
Should I pay extra or refinance?⌄
They solve different problems. Refinancing lowers your rate; extra payments attack the principal at your current rate. You can do both — refinance to a lower rate, then keep paying extra.
Is there a penalty for paying my mortgage early?⌄
Most modern U.S. mortgages have no prepayment penalty, but check your loan documents. When you pay extra, note that it should be applied to principal.
Is paying off my mortgage early a good idea?⌄
Paying down a mortgage is a guaranteed, risk-free return equal to your interest rate. If that rate is high relative to safe investments, it's hard to beat — though keep an emergency fund first.
Have another question? Get in touch.