Extra payments go straight to the principal, so they shrink the balance that future interest is charged on, which shortens the loan and lowers the total interest. A free mortgage payoff calculator shows how much sooner the loan ends and how much interest you save for any extra monthly or one-time amount, all computed in your browser.
Free mortgage payoff calculator. See how many months to clear your balance with extra payments, the total interest, and interest saved versus no extra.
Open Mortgage Payoff Calculator → Free toolFree mortgage calculator with amortization schedule. Estimate your monthly home loan payment, total interest and payoff over the full term in seconds.
Open Mortgage Calculator →On an amortizing mortgage, early payments are mostly interest and only a little principal. Any extra amount you add is applied entirely to principal, which removes all the future interest that balance would have generated. That compounding-in-reverse effect is why even a modest extra payment each month can shave years off a 30 year loan and save a large amount of interest.
A steady extra amount every month and a single lump sum both help, in different shapes: the monthly habit steadily accelerates the payoff, while a lump sum has its biggest impact the earlier in the loan it lands, because it removes interest for more remaining years. The calculator lets you test both and compare the payoff date and interest saved before committing.
Usually not. On a standard mortgage they shorten the term instead. The scheduled payment stays the same, but the loan ends sooner. Some lenders offer recasting to lower the payment after a lump sum.
The earlier the better. Early in the loan the balance is largest, so removing principal then eliminates the most future interest.
Yes. Tell your servicer to apply extra payments to principal, otherwise some may treat it as a prepayment of the next scheduled payment instead.