Mortgage Extra Payments Calculator
Accelerate your mortgage payoff with extra payments and see potential savings
Original Schedule
Remaining balance or original loan value
Yearly rate of interest or APR
Remaining or original loan term
Closest date when the monthly payment is due
The compounding frequency for interest calculations
Extra Payment Specification
Switch from monthly to accelerated payment schedule
Amount added to each payment period
Date when periodic extra payments begin
One extra payment made each year
Date for annual extra payment
One-time extra payment amount
Date for lump sum prepayment
Payment Summary
| Original Schedule | With Extra Payments | Savings | |
|---|---|---|---|
| Payment Amount | $854.077 | $854.077 | +$0 |
| Payment Frequency | monthly | monthly | - |
| Loan Term | 20y 0m | 20y 0m | -0y 0m |
| Total Interest | $69,978.398 | $69,978.398 | -$0 |
| Total Amount | $204,978.398 | $204,978.398 | -$0 |
| Payoff Date | Invalid Date | Invalid Date | Earlier by 0y 0m |
How Extra Payments Work
Payment Frequency Changes
Switching to bi-weekly payments means making 26 half-payments per year (13 full payments) instead of 12 monthly payments. This extra payment goes directly to principal.
Extra Principal Payments
Every extra dollar goes directly to reducing the principal balance. This reduces the base amount on which future interest is calculated, creating compound savings.
Lump Sum Benefits
Even a single lump sum payment can significantly reduce your total interest and loan term, especially if made early in the loan term when most payments go to interest.
Extra Payment Strategies
Bi-weekly Payments
26 payments yearly = 1 extra payment
Round Up Payments
Round to nearest $50 or $100
Tax Refund
Apply annual tax refund to principal
Bonus Money
Use work bonuses for lump sum payments
Benefits of Extra Payments
Dramatically reduce total interest paid
Shorten loan term by years
Build equity faster
Achieve debt-free homeownership sooner
Guaranteed return equal to interest rate
Every extra $100/month makes a difference
Understanding Mortgage Extra Payments
Why Extra Payments Work
When you make extra payments on your mortgage, the additional money goes directly toward the principal balance. This reduces the base amount on which future interest is calculated, creating a compounding effect that saves both time and money.
Best Times to Make Extra Payments
- •Early in the loan: Maximum impact when most payments go to interest
- •After pay raises: Increase payments with income growth
- •With windfalls: Use bonuses, tax refunds, or inheritance
Extra Payment Methods
1. Bi-weekly Payments
Split monthly payment in half, pay every two weeks = 13 months of payments per year
2. Periodic Extra
Add consistent amount to each payment (e.g., $100/month extra)
3. Annual Extra
One extra payment per year from tax refund or bonus
4. Lump Sum
One-time large payment from inheritance, sale, etc.
Important Considerations
Before Making Extra Payments:
- • Pay off high-interest debt first
- • Build emergency fund (3-6 months expenses)
- • Maximize employer 401(k) match
- • Consider opportunity cost vs. investments
When Extra Payments Make Sense:
- • High mortgage interest rate (>5%)
- • Peace of mind from debt reduction
- • Approaching retirement
- • Already maxing retirement accounts