Extra Mortgage Payment Calculator: What If I Pay a Little Extra?
See how much time and interest you could save by budgeting a payment that includes extra toward principal. Results update as you type.
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This assumes a fixed interest rate and that you make the extra payment every month. Most mortgages let you pay extra without a penalty, but check yours, and ask your lender or servicer to apply the extra to principal.
How paying extra toward principal works
Each mortgage payment covers interest first, and whatever is left reduces your loan balance, called principal. Any extra money you add goes straight to principal, so every month after that you owe interest on a smaller balance. Over many years, even a modest amount can cut years off the loan and save thousands of dollars in interest.
This calculator shows how much time and interest you could save by adding a set amount to your payment every month. It also shows an equivalent interest rate: the rate a standard loan would need to charge to cost the same total interest. That is a way to see paying extra as being like a lower rate, without refinancing.
If you are still deciding how much house to buy, you can plan for this from the start by choosing a home where your required payment leaves room in your budget for extra. Most mortgages allow extra payments without a penalty, but confirm with your lender, and make sure extra payments are applied to principal.
Common questions about paying extra on a mortgage
How much interest can I save by paying extra on my mortgage?
It depends on your balance, interest rate, and years left. Even a modest amount each month can cut years off the loan and save thousands of dollars in interest, because the extra goes straight to principal. Enter your numbers to see yours.
Does extra money go to principal automatically?
Not always. Ask your lender or servicer to apply the extra to principal, and check how to mark it that way when you pay.
Is there a penalty for paying extra on a mortgage?
Most mortgages let you pay extra without a penalty, but some have prepayment penalties. Check your loan documents or ask your servicer.
What is the equivalent interest rate?
It is the rate a standard loan would need to charge to cost the same total interest. That is a way to see paying extra as being like a lower rate, without refinancing.
Can I plan for extra payments before I buy?
Yes. If you are still deciding how much house to buy, choose a home where your required payment leaves room in your budget for extra. The affordability calculator can help you size that.