LOANS & MORTGAGES CHANNEL
Extra Payment Mortgage Calculator
Calculate how much time and interest you save by making extra monthly principal payments.
Calculator Variables
Calculation Overview
See how adding extra cash monthly or annually to your principal reduces your mortgage term and saves thousands in interest.
Mathematical Model & Formula
Amortization Loop with extra Principal
Runs two parallel amortization loops, applying the extra monthly payment directly to principal deduction to bypass interest generation.
Variables Defined:
Worked Example Scenario
Scenario: Adding $200/mo extra on a $240,000 mortgage.
- Calculates standard interest.
- Calculates interest with $200 added principal deduction.
Result: Saves years and thousands.
Frequently Asked Questions
Should I make extra principal payments?
Yes, because extra payments lower your loan balance directly, instantly saving you on all subsequent compounding interest.