Extra Mortgage Payment Calculator
See how additional mortgage payments could reduce your total interest and help you pay off your loan sooner.
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- Results shown instantly
Without vs. With Extra Payments
| Without Extra | With Extra | |
|---|---|---|
| Scheduled Payment | $2,022.62 | $2,022.62 |
| Typical Total Payment | $2,022.62 | $2,522.62 |
| Number of Payments | 360 | 216 |
| Payoff Date | Jan 2000 | Jan 1988 |
| Total Interest | $408,142 | $222,590 |
| Total Payments | $728,142 | $542,590 |
Balance Over Time
Original balance vs. balance with extra payments. The extra-payment balance reaches $0 sooner.
Updated Amortization Schedule
Yearly summary by default — expand any year to see monthly detail.
Amortization Schedule (With Extra Payments)
Yearly by default — tap a year to view its monthly payments.
Total Principal Paid
$320,000
incl. $107,500 extra
Total Interest Paid
$222,590
Total Amount Paid
$542,590
Final Balance
$0
| Year | Beginning Balance | Scheduled Principal | Extra Principal | Total Principal | Interest | Total Paid | Ending Balance |
|---|---|---|---|---|---|---|---|
| 1 | $320,000 | $3,759 | $6,000 | $9,759 | $20,513 | $30,271 | $310,241 |
| 2 | $310,241 | $4,412 | $6,000 | $10,412 | $19,859 | $30,271 | $299,829 |
| 3 | $299,829 | $5,110 | $6,000 | $11,110 | $19,162 | $30,271 | $288,719 |
| 4 | $288,719 | $5,854 | $6,000 | $11,854 | $18,418 | $30,271 | $276,866 |
| 5 | $276,866 | $6,648 | $6,000 | $12,648 | $17,624 | $30,271 | $264,218 |
| 6 | $264,218 | $7,495 | $6,000 | $13,495 | $16,777 | $30,271 | $250,724 |
| 7 | $250,724 | $8,398 | $6,000 | $14,398 | $15,873 | $30,271 | $236,325 |
| 8 | $236,325 | $9,363 | $6,000 | $15,363 | $14,909 | $30,271 | $220,963 |
| 9 | $220,963 | $10,391 | $6,000 | $16,391 | $13,880 | $30,271 | $204,571 |
| 10 | $204,571 | $11,489 | $6,000 | $17,489 | $12,782 | $30,271 | $187,082 |
| 11 | $187,082 | $12,661 | $6,000 | $18,661 | $11,611 | $30,271 | $168,422 |
| 12 | $168,422 | $13,910 | $6,000 | $19,910 | $10,361 | $30,271 | $148,511 |
| 13 | $148,511 | $15,244 | $6,000 | $21,244 | $9,028 | $30,271 | $127,268 |
| 14 | $127,268 | $16,666 | $6,000 | $22,666 | $7,605 | $30,271 | $104,601 |
| 15 | $104,601 | $18,184 | $6,000 | $24,184 | $6,087 | $30,271 | $80,417 |
| 16 | $80,417 | $19,804 | $6,000 | $25,804 | $4,467 | $30,271 | $54,613 |
| 17 | $54,613 | $21,532 | $6,000 | $27,532 | $2,739 | $30,271 | $27,081 |
| 18 | $27,081 | $21,581 | $5,500 | $27,081 | $895 | $27,976 | $0 |
This schedule reflects loan principal and interest only — taxes, insurance, PMI, and HOA are not included in the loan balance.
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How Extra Mortgage Payments Work
Extra payments are applied to your loan principal. Because interest is charged on the remaining balance, a lower balance means less interest accrues each month — which shortens your payoff period and reduces total interest.
Your required monthly principal-and-interest payment is set when your loan is originated and does not change when you pay extra. Instead, the extra amount reduces your principal faster, which reduces the interest charged in every future month. Over time this compounds into meaningful savings.
In the early years of a mortgage, most of each payment is interest because the balance is largest then. That is also when extra payments have the greatest impact, since every dollar of principal removed avoids years of future interest.
Why Extra Payments Can Reduce Interest
Mortgage interest is calculated each month on the outstanding balance. When you pay extra toward principal, the balance drops sooner than scheduled, so each subsequent month charges interest on a smaller amount. The earlier the extra payment, the more months of interest it eliminates.
Extra payments do not lower your required monthly payment — they shorten the term. Your servicer still bills the same scheduled amount; you simply reach a zero balance sooner.
Monthly vs. Annual vs. Lump-Sum Payments
Monthly Extra
A small recurring amount added every month. Steady and predictable; even modest amounts add up over a long loan.
Annual Extra
A larger payment once a year — for example, from a bonus or tax refund. Applied at the month you choose.
One-Time Lump Sum
A single extra payment at a specific month. Useful for windfalls without committing to an ongoing change.
You can combine all three strategies at once. The calculator never double-counts payments — each type is applied independently to principal.
Make Sure Extra Payments Are Applied to Principal
Some servicers apply extra funds to the next month's payment rather than to principal unless you instruct otherwise. That reduces future interest far less. Confirm with your servicer how to direct extra payments specifically to principal reduction.
Before Making Extra Mortgage Payments
Extra payments can be a strong financial move, but consider your full picture first:
- An emergency savings cushion may be more urgent than an early payoff.
- Higher-interest debt (like credit cards) usually costs more than your mortgage rate.
- Check whether your loan has a prepayment penalty or specific prepayment provisions.
- Compare the after-tax return of investing spare cash versus paying down a low-rate mortgage.
- Consider other financial priorities such as retirement contributions or major upcoming expenses.
This calculator is educational. It does not recommend one choice over another — it helps you see the numbers so you can decide what fits your situation.
Extra Mortgage Payment Calculator Methodology
How MoneyMetric HQ calculates the impact of extra payments on your mortgage.
Baseline payment. The scheduled monthly principal-and-interest payment is calculated with the standard amortizing formula M = P × [r(1+r)n] / [(1+r)n − 1], where P is the current balance, r is the monthly rate, and n is the remaining number of payments. For 0% interest, M = P / n.
Monthly interest. Each month, interest = beginning balance × monthly rate. Scheduled principal = scheduled payment − interest. Extra principal = the monthly extra, plus an annual extra in the month you choose, plus a one-time extra in its selected month. Strategies combine without double-counting.
Balance reduction. Ending balance = beginning balance − (scheduled principal + extra principal). Future interest is always computed on the new lower balance, so extra payments reduce interest in every subsequent month.
No recasting. Extra payments never lower the scheduled monthly payment. They reduce principal faster and shorten the payoff period instead.
Final payment. If scheduled principal plus extra would exceed the remaining balance, the final payment is automatically reduced so the ending balance is exactly $0 — never negative.
Savings. Interest saved = baseline total interest − with-extra total interest. Time saved = baseline number of payments − with-extra number of payments. Both come from the full-precision schedules.
Rounding. MoneyMetric HQ performs calculations using full numerical precision internally and rounds values only for display. Lifetime totals are summed from the full-precision schedule, never from rounded payments.
See our full MoneyMetric HQ Methodology page for more.
Extra Mortgage Payment Example
An illustrative scenario — not a current market rate or lending offer.
Current Loan Balance
$320,000
Interest Rate
6.5%
Remaining Term
30 years
Scheduled Monthly P&I
$2,022.62
Extra Monthly Payment
$500
Typical Total Monthly Payment
$2,522.62
With a $500 monthly extra applied to principal, the loan pays off in roughly 18 years instead of 30, and total interest falls from about $408,142 to about $222,590 — an interest saving of roughly $185,552. Exact values vary slightly with payment-date and cent-rounding conventions. The 6.5% rate is illustrative and not a current mortgage rate or available lending offer.
Extra Mortgage Payment Calculator FAQs
How much can I save by paying extra?
It depends on your rate, term, balance, and how much extra you pay — and how early you start. Because interest is charged on the remaining balance, extra payments early in the loan save the most. Use the calculator to see the exact estimate for your numbers.
Does extra money reduce principal?
Yes — when properly directed to principal, extra payments reduce your outstanding balance. Confirm with your servicer that extra funds are applied to principal rather than to the next scheduled payment.
Do extra payments lower my required monthly payment?
No. Extra payments reduce your balance faster and shorten your payoff period, but your required monthly principal-and-interest payment stays the same unless you refinance or recast the loan.
Can extra payments shorten my mortgage?
Yes. By reducing principal faster, extra payments lower future interest and can pay the loan off months or years earlier than the original schedule.
Monthly extra vs. lump sum?
A monthly extra provides steady, predictable savings. A lump sum can have a large immediate impact if applied early. Both reduce principal; the calculator lets you combine them and compare the results.
What happens if I make one extra payment per year?
One extra full payment per year, applied to principal, reduces your balance by that amount each year and can meaningfully shorten a long-term mortgage. The annual-extra option models this.
How much extra is needed to pay off my mortgage early?
It depends on your target payoff date, rate, and balance. The calculator shows the new payoff date and total interest for any extra amount you enter, so you can find the figure that meets your goal.
Can I combine extra-payment strategies?
Yes. You can enter a monthly extra, an annual extra, and a one-time extra at the same time. Each is applied independently to principal and never double-counted.
Do extra payments always save interest?
Whenever the loan charges interest, paying principal early reduces future interest. At a 0% rate there is no interest to save, though extra payments can still shorten the payoff period.
What happens at 0% interest?
At 0% there is no interest, so interest saved is $0. Extra payments still reduce the balance and can shorten the payoff period because each payment goes entirely to principal.
Should I tell my servicer to apply extra payments to principal?
Yes. Some servicers default to applying extra funds to the next payment rather than to principal. Instruct your servicer to apply extra amounts to principal reduction to get the interest savings shown here.
Could my mortgage have a prepayment provision?
Some loans include prepayment penalties or specific rules for how extra payments are applied. Review your loan documents or ask your servicer before committing to an extra-payment plan.
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How Mortgage Payments Work
Read guideUnderstanding Mortgage Interest
How Down Payments Work
What Is PMI?
15-Year vs. 30-Year Mortgages
Understanding Closing Costs
MoneyMetric HQ calculators are provided for educational and informational purposes. Results are estimates and may differ from lender, loan-servicer or other financial calculations because of loan terms, payment timing, rounding, fees, taxes, insurance and other factors. MoneyMetric HQ does not provide personalized financial, investment, tax, legal or credit advice. See our Methodology, Financial Disclaimer, and Privacy Policy.