Pay it off faster

Extra Payment Calculator

Every extra dollar you pay goes straight to principal, which shrinks the balance interest is charged on. Even a modest amount each month can cut years off the loan and save tens of thousands in interest. Add an extra payment below and the calculator shows the exact interest and time you save.

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Your numbers

Down payment
= $80,000 down
Loan term
This week's US averages: 6.49% for 30-year, 5.82% for 15-year (updated Jul 2026). Your rate depends on credit and lender. Freddie Mac PMMS
Estimated monthly payment
$2,537/mo
Principal
$29011%
Interest
$1,73168%
Property tax
$36714%
Home insurance
$1506%
Loan amount
$320,000
Total interest
$284,688
Total cost
$742,638
principal, interest & fees
Payoff
Sep 2048
22 yr 3 mo
You'd save $122,696 in interest
Paying this way clears the loan 7 yr 9 mo early, in Sep 2048 instead of after the full 30-year term.
Over the life of the loan

Loan balance over time

$0$80K$160K$240K$320K5y10y15y20y
Crossover in year 14, the point where more of each payment builds equity than pays interest.

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Full breakdown

Amortization schedule

Every payment, split into principal and interest. Export it or print a copy.

YearPrincipalInterestBalance
2026$3,283$10,340$316,717
2027$6,894$20,352$309,823
2028$7,355$19,891$302,468
2029$7,847$19,399$294,621
2030$8,371$18,875$286,250
2031$8,931$18,315$277,319
2032$9,528$17,718$267,791
2033$10,165$17,081$257,625
2034$10,845$16,401$246,780
2035$11,570$15,676$235,210
2036$12,344$14,902$222,866
2037$13,169$14,077$209,697
2038$14,050$13,196$195,647
2039$14,989$12,257$180,657
2040$15,992$11,255$164,666
2041$17,061$10,185$147,605
2042$18,202$9,044$129,403
2043$19,419$7,827$109,984
2044$20,717$6,529$89,267
2045$22,103$5,144$67,165
2046$23,580$3,666$43,584
2047$25,157$2,089$18,427
2048$18,427$469$0
Why it works

Extra principal compounds in your favour

Interest each month is your balance times the monthly rate. Pay a little extra and the balance drops faster, so next month's interest is smaller, so even more of your regular payment attacks principal. That feedback loop is why a steady extra payment early in the loan is so powerful, and why the savings are largest when you start soon.

The green figure above shows your interest saved and how many years you shave off. Try $100, $250, and $500 a month to see how the payoff date moves.

How to pay extra

Monthly, yearly, or one lump sum

There is no wrong way to do it. A fixed amount each month is the simplest. A yearly lump from a tax refund or bonus works too. A single one-time payment early in the loan has an outsized effect because it removes interest for every remaining month. The calculator handles all three, so you can model whatever fits your cash flow.

Questions & answers

Frequently asked

Is it better to pay extra monthly or once a year?
Monthly usually wins by a little because the principal drops sooner and stays lower all year. But the difference is small, so pick whatever you will actually stick with.
Will my lender apply extra to principal automatically?
Not always. Some apply extra to the next payment instead. Note 'apply to principal' on the payment, and confirm with your servicer, so the extra actually reduces the balance.
Are there penalties for paying early?
Most US conventional mortgages have no prepayment penalty, but check your loan documents. If one exists, it usually only applies in the first few years.
Should I pay extra or invest instead?
It depends on your rate versus your expected investment return, and on how much you value guaranteed, tax-free savings. Paying down a mortgage is a certain return equal to your rate, which is compelling when rates are high.
MF
Marcus Fielding· Mortgage analyst & editor
Published June 2026 · Updated July 2026
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