What happens when you pay extra on your mortgage?
Make a plan for additional principal payments. Calculate your original amortisation schedule, how extra monthly or one-time payments shorten the loan, and whether a contractual fee changes the savings.
Compare early repayments
Fixed-rate, fully amortising model ONLY. Uses a nominal annual interest rate divided by 12, assumes payments made at month end and no rate changes, skipped payments, fees financed into principal, escrow, mortgage insurance, refinancing or recasting. Extra principal may require lender instructions. The prepayment charge is NOT determined automatically.
Your four payoff scenarios
Your four payoff scenarios
Interest: $313,212.12
Interest: $233,437.77
Interest: $276,986.80
Interest: $210,589.66
Year-by-year balance view
| Month | Interest | Payment | Remaining loan balance |
|---|---|---|---|
| 1 | $1,375.00 | $1,903.37 | $299,471.63 |
| 2 | $1,372.58 | $1,903.37 | $298,940.84 |
| 3 | $1,370.15 | $1,903.37 | $298,407.62 |
| 4 | $1,367.70 | $1,903.37 | $297,871.96 |
| 5 | $1,365.25 | $1,903.37 | $297,333.84 |
| 6 | $1,362.78 | $1,903.37 | $296,793.25 |
| 7 | $1,360.30 | $1,903.37 | $296,250.19 |
| 8 | $1,357.81 | $1,903.37 | $295,704.63 |
| 9 | $1,355.31 | $1,903.37 | $295,156.58 |
| 10 | $1,352.80 | $1,903.37 | $294,606.01 |
| 11 | $1,350.28 | $1,903.37 | $294,052.92 |
| 12 | $1,347.74 | $11,903.37 | $283,497.30 |
| 264 | $0.02 | $4.14 | $0.00 |
How to use the mortgage extra payment calculator
- 01
Use the CURRENT outstanding mortgage principal and months REMAINING from your amortisation schedule, not your original home price or whole original mortgage term.
- 02
Enter the interest rate your lender charges on the outstanding balance. The model assumes a fixed nominal annual rate divided by 12 for the entire remaining term, and calculates the scheduled principal-and-interest payment.
- 03
Add any recurring monthly extra principal and/or a one-time lump sum. Select the month from now for that lump sum. Payments are made after the normal scheduled instalment and KEEP your scheduled instalment unchanged to shorten the remaining term.
- 04
If your contract includes a prepayment penalty or processing charge, enter a confirmed one-time amount. The result subtracts that amount from gross interest savings, but does not decide when or whether your lender can legally charge it.
Repayment assumptions & what to verify
Fixed-rate, fully amortising model ONLY. Uses a nominal annual interest rate divided by 12, assumes payments made at month end and no rate changes, skipped payments, fees financed into principal, escrow, mortgage insurance, refinancing or recasting. Extra principal may require lender instructions. The prepayment charge is NOT determined automatically.
Common questions
Will the monthly mortgage payment automatically go down?
Not here. This model assumes you keep the same scheduled monthly principal-and-interest payment so the mortgage is paid off sooner. A lender recast or refinance uses a different method.
Is paying extra principal always penalty-free?
Not necessarily. Some mortgage loans carry a prepayment penalty under specific conditions. Consult your Loan Estimate and mortgage documents, and ask for a current lender quote.
Are property tax, escrow or insurance included?
No. The payment is principal and interest only. Taxes, insurance, PMI, HOA fees and other costs do not directly reduce loan principal.
CFPB — Mortgage prepayment penalties and loan disclosures
Fixed-rate, fully amortising model ONLY. Uses a nominal annual interest rate divided by 12, assumes payments made at month end and no rate changes, skipped payments, fees financed into principal, escrow, mortgage insurance, refinancing or recasting. Extra principal may require lender instructions. The prepayment charge is NOT determined automatically.