Free Calculator
See how a little extra each month can shave years and tens of thousands in interest off your mortgage.
Estimate only. Assumes a fixed rate and that the extra amount is applied to principal every month.
Every extra dollar applied to principal skips all the future interest that dollar would have accrued. Because mortgages are front-loaded with interest, even a modest extra payment early on removes years from the schedule. This tool compares your normal payoff to a payoff with the extra amount applied monthly.
Prefer to lower the payment instead of the term? Compare a refinance or a mortgage recast.
Extra principal is the highest-return, lowest-risk move most homeowners have. Because interest is charged on your remaining balance, every extra dollar of principal removes all the future interest that dollar would have cost — which is why even $200 a month extra can cut years off a 30-year loan and save tens of thousands in interest.
This calculator shows how a set extra payment shortens your term and slashes total interest. One alternative worth knowing: a mortgage recast. If you make a large lump-sum payment, many lenders will re-amortize the loan over the remaining term, which lowers your monthly payment without a refinance or new closing costs — useful if you come into money but like your current rate.
It depends on your rate. If your rate is already low, extra principal or a recast usually beats refinancing (no closing costs, and you keep the rate). If rates have dropped meaningfully below yours, a refinance may save more — we'll run the break-even both ways.
A recast re-amortizes your loan after a large principal payment, lowering your monthly payment over the remaining term while keeping your rate and loan intact. It typically costs a small fee — far less than refinancing — and is a great option when you keep a low rate.
It depends on your balance, rate, and how early you start, but an extra $200–$300/month often removes several years and tens of thousands in interest. Enter your numbers above to see your specific savings.
If your rate is high, refinancing may save more; if it's already low, extra principal payments or a recast are usually better. We can compare all three for you.
Not always — tell your servicer to apply extra amounts to principal, or they may hold it toward the next payment.
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