What happens if you pay extra principal on your mortgage? Compare your current payoff path with a monthly extra payment, a one-time payment, or both.
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The payoff lab
Change the numbers and watch the payoff date move. The money you send to principal is no longer available for other needs.
Estimated interest avoided
$64,928
Estimated required principal and interest payment: $1,688/month. Taxes, insurance, fees and future rate changes are excluded.
The cash tradeoff
This plan puts $0 in now and $200 more each month toward the loan. Keep enough accessible cash for bills and surprises before committing extra principal.
Assumes a fixed rate, monthly interest and end-of-month payments. Your lender must apply extra payments to principal; confirm its instructions and any prepayment terms. Estimates are rounded for display.
The calculator starts with today's balance, a fixed interest rate, and the number of years left. It estimates the required principal and interest payment, then applies your extra amount to the remaining principal. That smaller balance generates less interest in later months. The result is a possible earlier payoff and less total interest.
Extra principal is difficult to get back without borrowing or selling the home. Compare the interest saved with higher-rate debt, a near-term expense, and cash you want available for an emergency. Our rainy-day fund guide and planner can help you size that buffer. Mortgage terms, tax treatment, and your other goals can change the decision.
Ask your servicer how to mark the payment for principal, whether a prepayment penalty applies, and how it handles partial payments. Some servicers may otherwise apply money to a future installment. Check your statement after the payment posts and compare the new balance with your expectation. The Consumer Financial Protection Bureau explains extra principal payments.
It depends on your remaining balance, fixed rate, and time left. Enter your current loan details and compare $0 with $100 extra per month. The estimate excludes taxes, insurance, fees, and changes to the loan.
Usually an extra principal payment shortens the payoff path while the scheduled payment stays the same. A lender-approved recast can change the payment; this calculator does not model recasting.
A lump sum reduces principal immediately, while monthly extras reduce it gradually. Both can save interest. Compare the result with your need for accessible cash and ask your servicer about payment instructions and loan terms.
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