A little extra principal each month saves a lot of interest. Tell it when you closed and it works out where your balance stands today, how much interest you save, and the month your loan is gone.
Use the numbers from your closing, or from your most recent refinance if you have one.
Leave it blank to use the estimated balance from your closing date.
| From today | Regular | With extra |
|---|---|---|
| Time to payoff | ||
| Paid off in | ||
| Interest remaining | ||
| Total remaining P&I |
Extra principal starts with your next payment. Savings count only the interest still ahead of you, not interest already paid. Your last payment will be smaller than the rest.
Interest is charged every month on whatever you still owe. Early in a 30 year loan most of your payment is interest, because the balance is big. An extra $300 skips the interest line and goes straight to the balance, so every payment after it carries a little less interest. Do that for years and the savings compound.
Most servicers let you add an extra principal amount to autopay, or mark it on the payment screen. Check your next statement: the extra should lower the principal balance, not show up as a prepaid next payment. If it was applied wrong, one call fixes it.
VA, FHA, USDA and conforming conventional loans have no prepayment penalty. You can send extra any month, skip it the next, or pay the whole thing off, and there is no fee. A few jumbo or portfolio loans do have one, so if your loan is unusual, read your note.
Extra principal cuts the balance. A refinance cuts the rate. If your rate is well above today's market, a lower rate can save more interest than extra payments, and you can do both. If you have a VA loan, compare the two first.
Sometimes a refinance, a recast, or paying down a higher-rate debt first does more. A 15 minute call with a licensed loan officer sorts it out, and it costs nothing.
This calculator is an educational estimate, not financial advice and not a payoff statement. It assumes a fixed rate, monthly payments made on time, and no recast, modification or refinance. It covers principal and interest only, not taxes, insurance, mortgage insurance or fees, and it ignores any tax effect of the interest you pay. Your servicer's timing and rounding will differ a little, and only your servicer can give you an exact balance or payoff amount. Confirm your numbers with a licensed loan officer before making decisions.