Mortgage with Extra Payments Calculator
Calculate savings from extra mortgage payments. Compare different payment strategies and see interest savings over time.
How it works
Extra payments go directly to principal, reducing the loan balance faster and saving interest. Even small extra payments can save thousands over the loan term.
Example
$300K loan at 6% for 30 years: Adding $200/month saves $86,000 in interest and pays off the loan 7 years early.
FAQ
Why do extra payments save so much interest?
Extra payments reduce the principal balance immediately, which means less interest is charged on future payments. The effect compounds over time.
When should I make extra payments?
Extra payments are most effective early in the loan when the balance is highest. Even a few years of extra payments can provide significant savings.
Should I pay extra or invest the money?
Compare the guaranteed savings (mortgage rate) to potential investment returns. If you can earn more investing, that may be better.
What's the best extra payment strategy?
Monthly extra payments provide the most savings, followed by annual payments. One-time lump sums are most effective early in the loan.
Can I stop making extra payments anytime?
Yes, extra payments are voluntary. You can start, stop, or change the amount anytime without penalty on most loans.