Extra Payment Mortgage Calculator

Every dollar you pay beyond the scheduled minimum goes directly to principal. That's important because your interest charge each month is calculated on the remaining balance. Knock down the balance faster, and the interest on future months drops too. It compounds in reverse.

Monthly extra payments are the simplest approach. Add a fixed amount to your payment each month and tell your servicer to apply it to principal (not to pre-pay future payments). Even $100 or $150 extra per month can cut years off a 30-year loan at today's rates.

Lump sum payments work well if you come into a windfall. Applying a large amount immediately reduces the principal on which interest is calculated for every subsequent month. The earlier in the loan term you apply a lump sum, the greater the lifetime savings.

Biweekly payments exploit a calendar quirk: there are 26 two-week periods in a year, so paying half your monthly payment biweekly results in 13 full payments instead of 12. That 13th payment goes to principal and can save 4-6 years on a 30-year mortgage. You don't need a formal biweekly program. Divide your monthly payment by 12 and add that as extra principal each month to get the same result.