Extra Payment Calculator
See how even a small extra monthly payment dramatically shortens your loan and saves thousands in interest. Results update instantly as you type.
1 Loan Details
2 Extra Monthly Payment
Try $100, $200, or $500 to see the impact.
Interest Saved
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Enter details above to calculate savings
Standard Payoff
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Without extra payment
New Payoff
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With extra payment
Standard Interest
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Total interest paid
New Total Interest
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With extra payment
Balance Over Time: Standard vs Extra Payment
Payment Comparison
| Scenario | Monthly Payment | Payoff | Total Interest |
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How Extra Mortgage Payments Work
Making extra payments on your mortgage is one of the most powerful ways to build home equity and reduce the total cost of your loan. Because mortgage interest is calculated on your remaining balance, every dollar of extra principal you pay today permanently reduces the balance on which future interest accrues.
On a $320,000 mortgage at 6.875% for 30 years, adding just $200/month in extra principal payments typically saves over $65,000 in interest and cuts roughly 5–6 years off the loan. Increasing that to $500/month can save more than $120,000 and reduce the term by nearly 10 years.
Tips for Extra Payments
- Specify "principal only" — when making extra payments, confirm with your lender that the extra amount reduces principal, not pre-pays future interest.
- Round up your payment — rounding a $1,847 payment to $2,000 is a painless way to add $153/month toward principal.
- Apply windfalls — tax refunds, bonuses, or gifts applied as lump sums have the same compounding effect as consistent extra payments.
- Compare to refinancing — if your rate is already competitive, extra payments may outperform refinancing once you factor in closing costs.
Use the Refinance Calculator to compare whether lowering your rate or making extra payments on your current loan produces better lifetime savings.