Extra Mortgage Payment Calculator

When you make extra payments beyond your scheduled amount, the overage goes directly to reducing your principal balance. This lowers the balance on which next month's interest is calculated, creating a compounding savings effect. Make sure to tell your servicer to apply extra payments to principal, not future payments.

A lump sum applied early saves slightly more interest than spreading the same amount over monthly payments, because it reduces the balance immediately. However, consistent extra monthly payments are practical and build into your budget. For best results, make a lump sum payment when you receive a windfall and also make regular extra monthly payments.

Most conventional mortgages originated since 2014 under the Qualified Mortgage rule do not have prepayment penalties. However, some older loans, jumbo loans, or non-QM products may include them. Always check your promissory note for a prepayment penalty clause before making substantial extra payments.