Extra Mortgage Payments: How Much Do They Save?

See how paying a little extra each month cuts years and tens of thousands in interest, and how to read an amortization schedule.

Early in a mortgage most of each payment is interest. Extra money sent to principal shortens the loan and cuts interest.

An example

On a typical 30-year loan, adding $200 a month saves about $103,000 of interest and finishes roughly 7 years early, in the calculator's default example. The earlier you start, the bigger the effect.

How to read the schedule

An amortization schedule lists each payment split into interest and principal. Over time the principal share grows. The mortgage amortization calculator shows this and lets you add extra payments.

Before you pay extra

• Check there is no prepayment penalty.
• Make sure extra goes to principal.
• Compare with investing. Paying off a 6% mortgage early is a guaranteed 6% return.

Related

Start with the basic mortgage calculator or see whether a lower rate helps with the refinance calculator.

This article is general education, not financial advice.