Do extra mortgage payments really save money?

Yes. Extra payments go straight to principal, which reduces the balance that interest is charged on, saving interest every month for the rest of the loan and shortening the payoff time.

Is it better to pay extra or refinance to a shorter term?

Extra payments keep flexibility because your required payment stays low. A shorter term usually offers a slightly lower rate but locks in a higher mandatory payment. The calculator helps you weigh the trade-off.

When should I make extra payments for the biggest impact?

The earlier the better. Because interest is front-loaded, extra principal in the first years of the loan eliminates the most future interest.

Extra Payment Calculator

See how much interest and time you save by adding a little extra to each monthly payment.

Loan amount

Interest rate

Loan term

Extra monthly payment

Pay off faster

Total interest saved$122,994

Time saved7 yrs 9 mos

New payoff time22 yrs 3 mos

Base monthly (P&I)$2,022.62

With extra$2,272.62

Ready to turn these numbers into a real loan?

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About this calculator

The extra payment calculator shows the powerful effect of paying a bit more than required each month. Enter your loan amount, rate, term and a planned extra monthly amount, and we reveal how many years and months you shave off the loan and how much total interest you save.

Because mortgage interest is charged on the remaining balance, every extra dollar of principal you pay early stops accruing interest for the rest of the loan. Even modest extra payments — an extra $100 or $200 a month — can cut years off a 30-year mortgage and save tens of thousands of dollars in interest.

Extra payments are flexible: unlike refinancing into a shorter term, you are not locked into a higher required payment, so you can pay extra when you can and skip it when money is tight. Experiment with the extra-payment slider to find a number that fits your budget, then get a personalized quote to start.

Frequently asked questions

Do extra mortgage payments really save money?: Yes. Extra payments go straight to principal, which reduces the balance that interest is charged on, saving interest every month for the rest of the loan and shortening the payoff time.
Is it better to pay extra or refinance to a shorter term?: Extra payments keep flexibility because your required payment stays low. A shorter term usually offers a slightly lower rate but locks in a higher mandatory payment. The calculator helps you weigh the trade-off.
When should I make extra payments for the biggest impact?: The earlier the better. Because interest is front-loaded, extra principal in the first years of the loan eliminates the most future interest.

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