How much can I save by making extra mortgage payments?

Even small extra payments save thousands. Adding $100/month to a $300,000 mortgage at 6.5% saves approximately $64,000 in interest and pays off the loan 7 years early.

Should I make extra mortgage payments or invest?

If your mortgage rate is higher than expected investment returns, paying down the mortgage is better. For a guaranteed return equal to your mortgage rate, extra payments are often the smarter choice.

Is it better to pay extra monthly or make a lump sum payment?

Small consistent monthly extra payments typically save more than annual lump sums because they reduce the principal earlier, reducing the interest that compounds over time.

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Extra Payment Calculator

See how extra payments can save you thousands in interest and years off your mortgage. Even small additions to your monthly payment make a huge difference.

Current Loan

Loan Amount ($)

Interest Rate (%)

Loan Term

Extra Payments

Extra Monthly Payment ($)

Extra Yearly ($)

One-Time ($)

You Save

$103,449

in interest savings

Pay Off Early

6y 11m

New Payoff

23y 1m

Comparison

Base Monthly Payment$1,896

Total Interest (No Extra)$382,633

Total Interest (With Extra)$279,185

Interest Savings$103,449

Quick Savings Scenarios

Popular extra payment strategies for your $300,000 loan at 6.5%

Strategy	Interest Saved	Time Saved
+$100/mo	$-57,996,468	-
+$200/mo	$-57,602,958	-
+$500/mo	$-56,422,427	-
+$1000/yr lump	$-58,073,180	-
$5000 one-time	$-58,275,176	-

How to Calculate Extra Payment Savings

Step 1: Enter your current loan details — input your loan amount, interest rate, and loan term. This establishes your baseline amortization schedule.
Step 2: Enter your extra monthly payment — this is the additional amount you plan to pay each month above the minimum. Even $100/month makes a significant difference.
Step 3: Add any extra yearly or one-time payments — you can model annual lump sums (e.g., tax refund) or a single one-time payment to see their impact.
Step 4: Compare the quick savings scenarios — the table shows five popular strategies so you can see which approach fits your budget and goals best.
Step 5: Review your total savings — check the interest saved, payoff time reduction, and the side-by-side comparison of total interest with and without extra payments.

What Is a Mortgage Extra Payment?

An extra mortgage payment is any amount you pay above your regular monthly payment. Even small additional payments reduce your principal balance faster, saving you thousands in interest and shortening your loan term significantly.

How Does the Extra Payment Calculator Work?

Our calculator compares your current loan amortization schedule with one that includes extra monthly, yearly, or one-time payments. It shows you exactly how much interest you save and how many years you knock off your mortgage.

Why Use Our Extra Payment Calculator?

See the real dollar savings from different extra payment strategies
Compare monthly extra payments, yearly lump sums, and one-time payments
Find the optimal extra payment amount that fits your budget