Mortgage Prepayment Calculator
See how making extra payments toward your mortgage principal each month can shave years off your loan and save you money in interest.
What mortgage prepayment does
When you pay extra toward your mortgage principal each month, that extra amount is not charged any future interest. Because a smaller balance means less interest accrues going forward, consistent extra payments both shorten your loan term and reduce the total interest you pay over the life of the loan.
How this calculator works
Enter your remaining loan balance, annual interest rate, and remaining term to find your standard monthly payment using the standard amortization formula. The calculator then simulates paying that amount plus your extra payment every month, tracking how much sooner the balance reaches zero and how much interest that saves compared to the original schedule.
- Interest Saved is the difference in total interest paid with vs. without the extra payment.
- Time Saved is how many fewer years it takes to pay off the loan.
This tool is for general planning and educational purposes. Always confirm with your lender that extra payments are applied directly to principal and that no prepayment penalty applies.