How much could you save by paying extra on your mortgage?
Enter your loan details below and see the exact interest savings and years cut off your payoff date — instantly.
How does making extra mortgage payments work?
When you make a payment beyond your required monthly amount, the surplus goes directly toward reducing your principal balance — assuming your lender applies it correctly. A lower principal means less interest accrues each month, which compounds into significant savings over the life of the loan.
Even an extra $100–$300 per month can shave years off a 30-year mortgage and save tens of thousands of dollars in interest.
Frequently Asked Questions
Does it matter when I make the extra payment?
Earlier is better. Extra payments made in the early years of your mortgage have the greatest impact because that’s when the largest share of each payment goes toward interest. A dollar paid in year 2 saves more than a dollar paid in year 22.
Should I pay extra on my mortgage or invest the money?
If your mortgage rate is above 6%, paying extra often beats conservative investments on a risk-adjusted basis. If your rate is below 5%, investing in a diversified index fund has historically outperformed the guaranteed savings from early payoff. This calculator shows the guaranteed savings side — compare it to your expected investment returns to decide.
Will my lender automatically apply extra payments to principal?
Not always. Some lenders treat extra payments as an advance on the next month’s installment rather than a direct principal reduction. Always specify in writing (or via your online portal) that the extra amount should be applied to principal only.
Is there a prepayment penalty?
Most conventional mortgages originated after 2014 do not carry prepayment penalties, but some older loans or certain adjustable-rate products might. Check your loan documents or call your servicer to confirm before making large lump-sum payments.