Extra payment payoff calculator
A little extra toward principal each month can shave years off a mortgage. This shows you exactly how many, and what the interest savings add up to.
Why extra payments hit so hard
Every dollar of extra payment goes straight to principal. That dollar stops accruing interest for every remaining month of the loan, which is why a modest extra amount can produce a large total saving, especially in the early years when the balance is biggest.
Two practical notes. First, tell your servicer the extra is for principal, so it doesn't sit as a credit toward next month's payment. Second, paying the mortgage down faster is one use of that money. Compare it against your other options, like higher-interest debt or retirement savings, before committing.
Assumptions in this estimate
- A fixed interest rate for the rest of the loan.
- Payments are made on time, and the extra is applied to principal every month.
- No prepayment penalty. Most loans today have none, but check yours.
- Escrow items (taxes and insurance) are excluded; this models the loan itself.
This is an educational estimate. It is not financial advice. Whether prepaying your mortgage is the best use of your money depends on your full financial picture. Confirm the numbers with your loan servicer.
Thinking about your long-term housing plan?
Payoff strategy, equity, and timing a future move all connect. Kevin is glad to talk it through.
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