Mortgage Extra Payment Calculator

Discover how making additional payments on your mortgage can significantly reduce your loan term and save you thousands in interest. Calculate the impact of monthly, yearly, or one-time extra payments.

Mortgage Extra Payment Calculator

See how making extra payments on your mortgage can save you thousands in interest and help you pay off your home years earlier.

Loan Information

Current Loan Balance

Interest Rate

Original Loan Term

years

Start Extra Payments After

months

Extra Payment Options

Extra Monthly Payment

Extra Yearly Payment

One-Time Payment

Extra Payment Analysis

Results update automatically as you change your inputs

Extra Payment Benefits

Interest Savings

Extra payments go directly to principal, reducing the loan balance faster and decreasing the amount of interest you'll pay over the life of the loan.

Early Payoff

Even small extra payments can significantly shorten your loan term. For example, paying an extra $100/month on a 30-year, $300,000 mortgage could help you pay it off 4-5 years early.

Flexibility

Unlike refinancing to a shorter term, making extra payments gives you flexibility. You can increase, decrease, or stop extra payments if your financial situation changes.

Extra Payment Strategies

Round up your payment to the nearest $100
Apply tax refunds or work bonuses to your mortgage
Make one extra payment each year (13 instead of 12)
Bi-weekly payments (26 half-payments = 13 full payments per year)

Important Considerations

Check if your mortgage has prepayment penalties. Also, consider whether you might earn a better return by investing the money instead, especially if your mortgage interest rate is low.

How to Use This Calculator

This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:

Enter Your Details

Fill in all required fields with your financial information.

Adjust Parameters

Use sliders and toggles to customize scenarios and assumptions.

View Results

Get instant calculations that update as you change inputs.

Compare Options

Try different scenarios to find the best financial solution.

Smart Strategies for Making Extra Payments

There are several approaches to making extra mortgage payments, each with its own advantages. Consider these options to find what works best for your financial situation:

Monthly Extra Payments

Adding even a small amount to your regular monthly payment can make a big difference over time. This approach provides consistency and can easily become part of your budget. Consider rounding up your payment to the nearest $100 or adding a fixed amount each month.

Bi-weekly Payments

Instead of making 12 monthly payments per year, make half your monthly payment every two weeks. This results in 26 half-payments, or 13 full monthly payments per year - adding one extra payment annually. This approach aligns well with bi-weekly pay schedules.

Annual Lump Sum Payments

Apply tax refunds, work bonuses, or other windfalls toward your mortgage principal once a year. This approach requires less monthly budget adjustment while still making significant impact on your loan term and interest savings.

One-Time Principal Payments

If you receive an inheritance, sell a valuable asset, or have other large sums available, making a substantial one-time payment to your mortgage can dramatically reduce your principal and the interest you'll pay over time.

Important Considerations

Prepayment Penalties: Check if your mortgage has penalties for early payoff or additional payments before making extra payments.
Loan Instructions: Specify to your lender that extra payments should be applied to the principal balance, not future interest.
Alternative Investments: If your mortgage interest rate is low, consider whether investing the money might yield better returns.
Emergency Funds: Ensure you have adequate emergency savings before making extra mortgage payments, as these funds become less accessible once applied to your home.