Paying a little extra toward your mortgage can make a noticeable difference over time. Even an additional $100, $200 or $500 each month can reduce your loan balance faster, which may help you pay less interest and reach your mortgage payoff date sooner.
The tricky part is knowing exactly how much an extra payment could change your mortgage. That's where an Extra Mortgage Payment Calculator can help.
This free calculator compares your regular mortgage repayment schedule with a schedule that includes an additional monthly payment. You can estimate your regular payment, accelerated payoff time, months saved and potential interest savings.
Enter your current mortgage balance, interest rate, remaining loan term and planned extra monthly payment to see how the numbers change.
This Extra Mortgage Payment Calculator was created by Revisiting Tools as an educational planning tool. It is designed to help you explore different mortgage repayment scenarios and understand how additional principal payments may affect your loan.
The results are estimates based on the information you enter. They are not a mortgage quote, loan statement or personalized financial advice. Actual results can vary depending on your lender, loan agreement, payment timing and other factors.
Extra Mortgage Payment Calculator
Enter your current mortgage details and planned extra monthly payment to estimate how much interest you could save and how much sooner you may pay off your mortgage.
Current Mortgage
Enter your information and select Calculate Extra Mortgage Payment.
This calculator provides estimates for educational purposes. Actual mortgage savings can vary based on your lender, loan agreement, payment timing, interest calculations, fees and other factors.
What Is an Extra Mortgage Payment?
An extra mortgage payment is money you pay toward your mortgage in addition to your required payment.
For example, if your regular principal-and-interest payment is $2,000 and you decide to pay another $200 each month, you would be paying $2,200 toward the mortgage each month under those assumptions.
When the additional money is applied toward principal, your outstanding loan balance can decrease faster. Because future interest is generally calculated using the remaining balance, paying down principal sooner can reduce the amount of interest charged over time.
The exact result depends on your mortgage terms and how your lender handles additional payments.
How Does Paying Extra on a Mortgage Work?
A typical fixed-rate mortgage payment includes principal and interest. The interest portion is calculated based on the outstanding loan balance and the applicable interest rate.
When you make an additional payment toward principal, the mortgage balance can fall faster than it would under the original repayment schedule.
A lower balance means there is less principal on which future interest is calculated. Over many months or years, that difference can become significant.
This calculator compares two scenarios: your regular mortgage schedule and a schedule that includes the extra monthly amount you enter.
Why Make Extra Mortgage Payments?
Homeowners may consider making additional mortgage payments for several different reasons.
- Pay off the mortgage sooner.
- Reduce total mortgage interest.
- Build home equity faster.
- Reduce the outstanding loan balance.
- Reach a debt-free goal sooner.
- Potentially reduce the financial cost of borrowing.
However, paying extra on your mortgage is not automatically the best choice for every household. The same money could potentially be used for emergency savings, higher-interest debt, investments, home improvements or other financial priorities.
How Much Interest Can Extra Payments Save?
The amount of interest you could save depends on several factors, including your remaining mortgage balance, interest rate, remaining loan term and the amount of your additional payment.
A larger extra payment generally reduces the balance faster. However, the exact savings depend on your existing mortgage schedule.
For example, an additional $200 per month might seem relatively small compared with a large mortgage balance. But if that extra payment continues for many years, it can result in additional principal being paid down and potentially reduce the number of payments required.
Use the calculator above to test several extra-payment amounts instead of relying on one example.
What Happens If You Pay Extra Every Month?
A consistent extra monthly payment can gradually reduce your mortgage balance faster than the original repayment schedule.
You can compare different amounts, such as:
- No extra payment
- $100 extra per month
- $200 extra per month
- $500 extra per month
- $1,000 extra per month
The higher the additional payment, the faster the mortgage may be paid off under the calculator's assumptions.
Consistency can also matter. You do not necessarily need to make a very large additional payment for an extra-payment strategy to affect the repayment schedule.
What About a One-Time Extra Mortgage Payment?
Not everyone wants to increase their mortgage payment every month. Another approach is making an occasional lump-sum payment toward the principal.
For example, someone might choose to put part of a bonus, tax refund or other available cash toward the mortgage.
A lump-sum payment can reduce the mortgage balance immediately, but the effect depends on the amount paid, the loan terms and how the lender applies the payment.
This calculator focuses on a recurring extra monthly payment. If you are considering a large one-time payment, review your mortgage agreement and contact your lender to understand how the payment will be applied.
Can Extra Payments Pay Off a Mortgage Early?
Extra payments can potentially help you pay off a mortgage earlier when the additional money is applied toward principal.
The amount of time you can save depends on the remaining balance, interest rate, remaining term and size of the additional payment.
For example, someone with 25 years remaining on a mortgage may see a different result from someone with only five years remaining, even if both borrowers make the same extra monthly payment.
The calculator estimates the difference by comparing the original repayment schedule with the accelerated schedule.
Why Mortgage Principal Matters
Mortgage principal is the amount you owe on the loan. Each principal payment reduces the outstanding balance.
Suppose your remaining mortgage balance is $300,000. If you make an additional $500 principal payment, the balance can fall faster than it would under the regular payment schedule.
That lower balance can reduce the amount of interest calculated during future payment periods.
When making an extra mortgage payment, check that your lender applies the additional amount toward principal. Some loan servicers may have specific instructions for how additional payments must be submitted.
How Does the Interest Rate Affect Extra-Payment Savings?
Your mortgage interest rate is an important part of the overall cost of borrowing.
A higher interest rate generally results in more interest being charged on the outstanding balance. Reducing that balance faster can therefore have a larger effect on future interest under the same assumptions.
Try different interest-rate assumptions in the calculator to see how the estimated interest savings change.
How Does the Remaining Loan Term Matter?
The remaining loan term determines how many scheduled payments are left on your mortgage.
A mortgage with many years remaining gives interest more time to accumulate. Making additional principal payments earlier in the remaining term can therefore change the repayment schedule substantially.
A mortgage that is already close to being paid off has fewer remaining payments and less future interest to eliminate, so the potential savings may be smaller.
Example: Paying an Extra $200 Per Month
Imagine that your current mortgage balance is $320,000, your interest rate is 6.5%, and you have 30 years remaining.
Now suppose you decide to pay an additional $200 toward the mortgage each month.
The extra $200 does not simply disappear into the mortgage. When properly applied toward principal, it can accelerate the reduction of your loan balance.
Over time, the lower balance can reduce future interest and potentially shorten the mortgage repayment period.
The actual savings depend on your mortgage assumptions, so enter your own numbers above to get an estimate.
How to Compare Extra Mortgage Payment Scenarios
A useful way to use an extra mortgage payment calculator is to compare several realistic scenarios.
- Start with no extra payment.
- Try an additional $100 per month.
- Try an additional $200 per month.
- Try an additional $500 per month.
- Try a larger payment that fits your budget.
- Compare the estimated interest savings.
- Compare the estimated payoff time.
Testing several options makes it easier to see how sensitive your mortgage is to changes in the extra payment amount.
How Much Extra Should You Pay on Your Mortgage?
There is no universal extra payment amount that works for every homeowner.
A payment that feels comfortable for one household may put too much pressure on another household's monthly budget.
Before increasing your mortgage payment, consider your emergency savings, existing debts, regular living expenses and other financial goals.
The goal should not simply be to pay the mortgage as quickly as possible. It should be to choose a payment strategy that fits your overall financial situation.
Should You Pay Extra on Your Mortgage?
There is no single answer for everyone.
Paying down a mortgage can reduce debt and future interest costs. However, you may have other financial priorities that deserve attention first.
For example, you may want to consider whether you have sufficient emergency savings or whether you have higher-interest debt that could cost more than your mortgage.
The calculator shows the mathematical effect of making extra mortgage payments. It cannot determine which use of your money is best for your individual circumstances.
Can You Pay Off a Mortgage Early?
Many mortgages allow borrowers to make additional principal payments, but the exact rules depend on the loan agreement and lender.
Before making a significant extra payment, check your mortgage documents or ask your lender whether there are any restrictions, minimum payment requirements or applicable prepayment penalties.
This is particularly important if you are planning a large one-time payment instead of a small recurring additional payment.
What Does This Extra Mortgage Payment Calculator Include?
The calculator compares your regular mortgage repayment schedule with a schedule that includes the extra monthly payment you enter.
- Current mortgage balance
- Interest rate
- Remaining loan term
- Regular principal-and-interest payment
- Extra monthly payment
- Estimated regular payoff period
- Estimated accelerated payoff period
- Estimated months saved
- Estimated interest without extra payments
- Estimated interest with extra payments
- Estimated interest saved
- Year-by-year amortization
What This Calculator Does Not Include
This calculator focuses on the mortgage principal-and-interest repayment and the effect of an additional monthly principal payment. It is not intended to predict every cost associated with owning a home.
- Property taxes
- Homeowners insurance
- HOA fees
- Utilities
- Maintenance
- Repairs
- Closing costs
- Mortgage origination fees
- Discount points
- Future changes in interest rates
- Future changes in property value
For a broader estimate of your monthly mortgage cost, you can also use our Mortgage Payment Calculator .
Why Is an Amortization Schedule Useful?
An amortization schedule shows how a mortgage balance changes as payments are made.
It can help you see how much principal and interest are paid during each year of the mortgage.
With an extra-payment strategy, the mortgage balance can decline faster. The calculator provides a year-by-year view of the accelerated schedule so you can see the estimated remaining balance over time.
Extra Mortgage Payments and Your Overall Housing Budget
An extra mortgage payment should be considered as part of your broader housing budget rather than as an isolated number.
Your overall housing expenses can include mortgage principal and interest, property taxes, homeowners insurance, HOA fees, maintenance and other recurring costs.
Our Homeownership Cost Calculator can help you look at a wider range of homeownership expenses.
Frequently Asked Questions
What happens when I make an extra mortgage payment?
If the additional money is applied toward principal, your mortgage balance can decrease faster. This can reduce future interest charges and potentially shorten the repayment period.
How much interest can I save by paying extra?
The amount depends on your remaining balance, interest rate, remaining loan term and extra payment amount. Enter your mortgage details into the calculator to estimate your potential interest savings.
Does an extra mortgage payment shorten the loan term?
It can. When extra money is applied toward principal, the mortgage balance can be paid down faster, potentially reducing the number of payments required.
Is it better to make extra monthly payments or a lump-sum payment?
Both approaches can reduce the mortgage balance. The better option depends on your cash flow, financial goals and mortgage terms. A recurring payment provides consistency, while a lump-sum payment can reduce the balance immediately.
Can I pay off my mortgage early?
Additional principal payments can potentially help you pay off a mortgage earlier. However, check your mortgage agreement and lender rules before making significant additional payments.
Does this calculator include property taxes and insurance?
No. This calculator focuses on mortgage principal and interest and the effect of an extra monthly payment. Property taxes, homeowners insurance and other homeownership expenses should be considered separately.
Does an extra payment always go toward principal?
Not necessarily. How additional payments are handled depends on the lender and loan agreement. Confirm with your lender that extra payments are being applied to principal as intended.
Should I pay extra on my mortgage?
That depends on your financial situation and priorities. Paying extra can reduce mortgage interest and debt, but you may also have other important uses for the money, such as emergency savings or paying higher-interest debt.
Does paying extra every month save interest?
It can. If the extra payment is applied to principal, the loan balance can decrease faster, which may reduce the amount of future interest charged under the same mortgage assumptions.
How much should I pay extra on my mortgage each month?
There is no single amount that is right for everyone. Choose an amount that fits comfortably within your overall budget while considering emergency savings, other debts and your financial goals.
Is this calculator financial advice?
No. The calculator is an educational planning tool that provides estimates based on the information entered. It is not financial, mortgage, tax, legal or investment advice.
Extra Mortgage Payment Calculator: The Bottom Line
Making additional mortgage payments can be a simple way to reduce your loan balance faster. Depending on your mortgage, even a relatively small recurring payment can potentially shorten the repayment period and reduce the amount of interest paid.
The most useful approach is to compare different scenarios instead of assuming that one extra-payment amount is automatically right for you. Try $100, $200, $500 or another amount that fits your budget and look at both the estimated interest savings and payoff time.
Remember that paying extra on a mortgage is only one part of a broader financial decision. Consider your overall budget, emergency savings, existing debt and other financial priorities before changing your payment strategy.
Related Calculators
- Mortgage Payment Calculator
- Mortgage Payoff Calculator
- Mortgage Refinance Calculator
- Home Affordability Calculator
- Down Payment Calculator
- Property Tax Calculator
- Closing Cost Calculator
- Homeownership Cost Calculator
- Rent vs. Buy Calculator
- Rent Affordability Calculator
- Debt-to-Income Calculator
- Salary / Take-Home Pay Calculator