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Mortgage Extra Payment Calculator
Adding a fixed amount to each mortgage payment is one of the simplest ways to cut the cost of a home loan. The extra money goes straight to principal, so the balance falls faster and less interest builds up.
The page starts with a $200,000 loan at 6 percent over 30 years and an extra $200 a month. Change any figure to match your own loan.
How the extra payment works
Interest each month is the balance times 0.5 percent. The payment of $1,199.10 covers the interest, with the rest going to principal. An extra $200 adds to the principal part so the balance falls faster and the interest charge shrinks.
Worked example
Without extra payments the loan costs $1,199.10 a month for 30 years and $231,676 in interest. With $200 extra each month the loan ends in 21 years.
That saves $79,801 in interest and cuts 9 years from the loan. The extra payments add up to $50,400 over the life of the loan.
Questions about this calculator
What would $500 extra a month do on the same loan?
The loan would end in 14 years 11 months and the interest would fall to $102,535. That saves $129,142 compared with paying only the regular $1,199.10.
Is it better to pay extra every month or in one lump sum?
An earlier extra payment cuts the balance sooner. A lump sum paid early saves more interest than spreading the same amount over months.
Does an extra $200 change the required payment?
No. The required payment stays at $1,199.10. The extra amount is optional and you can stop it at any time, which is flexibility a shorter loan term would not give you.
Should I pay extra on the mortgage or save the money elsewhere?
That depends on your rate and your other goals, which this calculator cannot weigh. It only shows what the extra money does to this loan.
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This page is for education only and is not financial or tax advice.