PrepayMath

Extra Payment & Early Payoff Calculator

Find out how much sooner you'll own your home, and how much interest you'll skip, by paying a little extra.

Principal & interest only. Taxes, insurance and PMI in escrow are not affected.

Why extra payments work

Each month, interest is charged on your remaining balance. Any amount above your required payment goes straight to principal, so every later month's interest is a little smaller and more of each payment goes to principal. The effect builds over time.

Worked example

A new $300,000 loan at 6.5% for 30 years costs $1,896.20 a month. Adding $200 a month pays it off in 23 years 1 month, which is 6 years 11 months sooner, and saves about $103,449 in interest.

Tip: tell your servicer the extra amount is for principal. Thinking of investing it instead? Try the pay off or invest calculator.

Related guide

How Much Does One Extra Mortgage Payment a Year Save?: One extra mortgage payment a year can cut years off a 30-year loan. See worked examples at several loan sizes and rates, the 1/12 trick, and biweekly plans.

Frequently asked questions

Do extra payments lower my monthly payment?

No. They shorten the loan and cut interest. To lower the required payment, ask about a recast.

Is there a penalty for paying my mortgage early?

Most US home loans made since 2014 have no prepayment penalty, but check your note or Closing Disclosure.

Are biweekly payments the same as extra payments?

A true biweekly plan makes 26 half-payments a year, which equals one extra monthly payment. You can model it here by adding your payment divided by 12 as a monthly extra.

Should I pay extra or build savings first?

Most planners suggest building an emergency fund and getting any employer retirement match first, because money paid into your home is hard to get back out.

Related calculators