How much does $100/month extra save on a mortgage?

On a $300,000/7%/30-yr mortgage: $100 extra/month saves approximately $46,000 in interest and pays off 5 years early. The impact is dramatic because it directly reduces the compounding principal.

When is the best time to make extra principal payments?

Early in the loan when the outstanding balance is largest. An extra $200/month in year 1 saves significantly more than the same $200/month in year 20 due to the compounding effect on reduced principal.

Should I pay down mortgage or invest the extra money?

Compare the mortgage rate (guaranteed return) vs expected investment return (variable). At 7% mortgage rate vs 7-10% stock returns, the decision is close. Consider tax deductibility and your risk tolerance.

Extra Principal Free Online Calculator and Tools

How It Works

Calculate how additional monthly principal payments reduce loan term and total interest. Shows the exact savings from $100, $200, or $500 extra per month

Each component has a specific meaning:

$100 — The $100 recorded for the scenario being assessed.
$200 — The $200 recorded for the scenario being assessed.
Or $500 extra per month — The or $500 extra per month recorded for the scenario being assessed.

Note: Interpret the extra principal payment result against the thresholds and context described above.

How to Use

Enter the $100, $200, or $500 extra per month for the scenario you are assessing. Calculate how additional monthly principal payments reduce loan term and total interest. Shows the exact savings from $100, $200, or $500 extra per month. Use the extra principal payment result to inform your calculation.

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