Extra Payment Savings Calculator

See how much interest you save and how much sooner you pay off your mortgage by adding extra principal each month.

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    The Power of Extra Principal Payments

    Due to amortization, extra payments made early in a loan's life have an outsized effect. An extra $200/month on a $320,000 loan at 7% can save over $90,000 in interest and cut nearly 6 years off the loan — for a total out-of-pocket cost of just $200/month.

    Strategies for Extra Payments

    • Biweekly payments: Pay half your monthly amount every two weeks — you'll make 13 full payments per year instead of 12
    • Annual lump sum: Apply year-end bonuses or tax refunds directly to principal
    • Round up: Round your payment up to the nearest $100 or $500

    Always specify that extra payments go toward principal only, not future payments, when submitting them to your lender or servicer.