See how a little extra each month cuts years off your loan and saves you thousands in interest — with a full month-by-month amortization schedule.
This calculator estimates principal and interest only. It does not include property taxes, homeowners insurance, HOA dues, or PMI, which increase your actual monthly payment. Results are estimates for general informational purposes and are not financial advice. Confirm figures with your lender. Not a commitment to lend.
Every dollar you pay above your scheduled payment goes straight to your loan's principal balance. Because mortgage interest is charged on the remaining balance, knocking down the principal early means less interest accrues every month afterward — for the entire life of the loan. The effect compounds: small extra payments in the early years save the most, because that's when your balance (and the interest on it) is highest.
This mortgage payoff calculator shows two scenarios side by side: your loan on the normal schedule, and the same loan with your extra payment applied every month. The gap between them is the time and interest you save.
On a 30-year loan, a large share of your early payments goes to interest, not principal. Adding even $100–$200 a month redirects money to principal from day one, which can shorten a 30-year mortgage by several years and save tens of thousands in interest. Use the amortization schedule above to see exactly how your balance falls year by year.
Two popular strategies reach a similar result. Making one extra monthly payment spread across the year adds roughly one full payment annually. A biweekly schedule — paying half your payment every two weeks — produces 26 half-payments, equal to 13 full payments a year instead of 12. Both put one extra payment toward principal each year. This calculator models a fixed extra amount each month, which you can set to match either approach.
Yes. Extra payments reduce your principal balance, so less interest accrues every month for the rest of the loan. The earlier in the loan you start, the more you save, because your balance is largest in the early years.
It depends on your mortgage rate versus your expected investment return, plus your tax situation and risk tolerance. Paying off a mortgage is a guaranteed return equal to your interest rate; investing has higher potential returns but more risk. Many people do some of both. This is a personal decision — consider speaking with a financial advisor.
No. Extra payments shorten the loan term but your required monthly payment stays the same, unless you formally recast the loan with your lender. To lower the monthly payment itself, you'd typically need to refinance or recast.
Most modern U.S. mortgages have no prepayment penalty, but some older or specialized loans do. Check your loan documents or ask your lender before making large extra payments.