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Interactive guide · Mortgage & Property

How to Calculate Extra Mortgage Payment

See how much interest and time an extra monthly payment removes.

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The formula

How this number is built

extra principal each month → shorter amortisation → interest saved = base interest − accelerated interest
Step by step

Calculating it yourself

Step 1

Enter the current balance and the rate on your note.

Step 2

Add the extra amount you can pay consistently rather than an optimistic figure.

Step 3

Confirm with your servicer that extra payments are applied to principal.

Step 4

Consider one annual lump from a bonus or refund instead of a monthly amount.

Step 5

Compare the guaranteed saving against higher-rate debt you could clear first.

Questions

What people ask next

Is there a prepayment penalty?

Most current mortgages have none, but older or non-conforming loans sometimes do. Check the note.

Better to invest instead?

If your expected after-tax return clearly exceeds the mortgage rate, investing can win. The mortgage payoff is the certain option.

Search intent

Searches this page answers

Related searchGoes to
extra mortgage paymentsExtra Mortgage Payment Calculator
pay off mortgage earlyExtra Mortgage Payment Calculator
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Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.