Compare your normal mortgage payoff schedule with additional monthly, annual or one-time principal payments and estimate potential time and interest savings.
Add one or more extra-payment strategies to compare them with your normal payoff schedule.
Compare the estimated repayment period and interest cost side by side.
This annual summary includes the extra-payment strategy entered above.
| Year | Beginning Balance | Regular Payments | Extra Principal | Principal Paid | Interest Paid | Ending Balance |
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Mortgage interest is generally calculated using the outstanding loan balance. When additional money is applied to principal, the remaining balance declines faster.
A smaller balance can mean less interest accrues during future payment periods, which may shorten the loan term and reduce the total amount of interest paid.
Adding a fixed amount to each scheduled payment creates a consistent accelerated-payoff strategy.
Some borrowers choose to apply bonuses, tax refunds or other periodic funds to mortgage principal once a year.
A single additional principal payment can also reduce future interest. The earlier the balance is reduced, the more repayment periods may be affected.
Not necessarily. Payment-processing practices vary. If you intend an additional payment to reduce principal, check your mortgage servicer's instructions and confirm how extra funds will be applied.
Extra principal payments may reduce the outstanding balance sooner. Because future interest is generally calculated from the remaining balance, this may reduce total interest over the life of the loan.
In general, reducing principal earlier gives the lower balance more time to affect future interest calculations. Actual results depend on the loan terms and payment schedule.
No. This calculator focuses on mortgage principal and interest because extra principal payments generally affect the loan balance rather than property taxes, homeowners insurance or HOA expenses.
The calculator applies the entered annual extra amount after every 12th scheduled payment until the loan is paid off.
Yes. Some loans may contain special prepayment terms or restrictions. Review your loan documents or contact your lender or servicer before making significant additional payments.