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Use this calculator to see how extra mortgage payments reduce your total interest paid and shorten your loan term. Enter your loan amount, interest rate, term, and extra payment amount to get an instant amortization schedule. Supports both annuity (equal monthly payments) and differentiated (decreasing payments) mortgage types.
Interest Saved
$179,759.08
Time Saved
12y 6m
Total Interest (with extra)
$202,874.38
Total Interest (original)
$382,633.47
New Payoff Time
17y 6m
Original Term
30y 0m
| Month | Payment | Principal | Interest | Extra | Balance |
|---|---|---|---|---|---|
| 1 | $2,396.2 | $271.2 | $1,625 | $500 | $299,228.8 |
| 2 | $2,396.2 | $275.38 | $1,620.82 | $500 | $298,453.41 |
| 3 | $2,396.2 | $279.58 | $1,616.62 | $500 | $297,673.83 |
| 4 | $2,396.2 | $283.8 | $1,612.4 | $500 | $296,890.03 |
| 5 | $2,396.2 | $288.05 | $1,608.15 | $500 | $296,101.98 |
| 6 | $2,396.2 | $292.32 | $1,603.89 | $500 | $295,309.66 |
| 7 | $2,396.2 | $296.61 | $1,599.59 | $500 | $294,513.05 |
| 8 | $2,396.2 | $300.93 | $1,595.28 | $500 | $293,712.13 |
| 9 | $2,396.2 | $305.26 | $1,590.94 | $500 | $292,906.86 |
| 10 | $2,396.2 | $309.63 | $1,586.58 | $500 | $292,097.24 |
| 11 | $2,396.2 | $314.01 | $1,582.19 | $500 | $291,283.23 |
| 12 | $2,396.2 | $318.42 | $1,577.78 | $500 | $290,464.81 |
When you make extra payments on your mortgage, the additional amount goes directly toward reducing your principal balance. Since interest is calculated on the remaining balance, a lower principal means less interest accrues each month. This creates a compounding effect: each extra payment saves you more than its face value over the life of the loan.
An annuity (fixed-payment) mortgage has equal monthly payments throughout the loan term. Early payments are mostly interest, while later payments are mostly principal. A differentiated mortgage has a fixed principal portion plus declining interest, resulting in higher payments initially that decrease over time. Differentiated mortgages pay less total interest but require higher initial payments.
For a $300,000 loan at 6.5% over 30 years (annuity): the monthly payment is approximately $1,896. Adding $500/month in extra payments would save roughly $152,000 in interest and pay off the loan about 11 years early. The total interest drops from approximately $382,000 to $230,000.
This calculator uses standard amortization formulas. For annuity mortgages: M = P × [r(1+r)^n] / [(1+r)^n – 1], where M is the monthly payment, P is the principal, r is the monthly interest rate, and n is the number of payments. Extra payments reduce the remaining principal, and the schedule is recalculated accordingly.
On a $300,000 loan at 6.5% over 30 years, adding $500/month in extra payments saves roughly $152,000 in interest and pays off the loan about 11 years early. Total interest drops from approximately $382,000 to $230,000. Your exact savings depend on your loan amount, rate, and term — use the calculator above for your scenario.
An annuity (fixed-payment) mortgage has equal monthly payments for the full term; early payments are mostly interest, later ones mostly principal. A differentiated mortgage has a fixed principal portion each month plus declining interest, so payments start higher and decrease over time. Differentiated loans typically pay less total interest but require higher initial payments.
Mathematically, if your after-tax investment return exceeds your mortgage rate, investing may yield more. Extra mortgage payments guarantee a return equal to your interest rate (risk-free) and reduce debt. The right choice depends on your rate, risk tolerance, and whether you have higher-interest debt or insufficient emergency savings — pay those first.
It depends on your loan size, rate, term, and extra amount. For a $300,000 loan at 6.5% over 30 years, $500/month extra pays off the loan in about 19 years (11 years early). Smaller loans or larger extra payments shorten the term further. Use the calculator to see your exact payoff date.
Yes. One extra annual payment (applied to principal) reduces interest and shortens the term. On a $300,000, 6.5%, 30-year loan, one extra payment per year can save tens of thousands in interest and cut the term by several years. The calculator can model any extra payment amount (e.g. one-twelfth of your monthly payment each month) to show the impact.
That depends on your loan contract. Some mortgages have prepayment penalties if you pay off a large amount or refinance within the first few years. This calculator does not account for penalties. Check your loan documents or ask your lender before making large extra payments; in many jurisdictions prepayment penalties are limited or prohibited.
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