Mortgage Amortization Schedule Extra Payments Calculator
Calculate your mortgage amortization schedule with extra payments. See how additional payments reduce interest and shorten your loan term. Save thousands with our free calculator.
Quick Answer
Extra mortgage payments can save you $50,000+ in interest and cut 5-10 years off your loan. Even small additional payments applied to principal make a huge difference over time.
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Get precise amortization schedules and see how extra payments accelerate your payoff
Calculate With Full ToolWhat is Mortgage Amortization with Extra Payments?
Mortgage amortization with extra payments shows how additional principal payments reduce your loan balance faster and save thousands in interest. Extra payments go directly to principal, shortening your amortization schedule and building equity faster.
How Extra Payments Work
When you make extra payments, they reduce your principal balance immediately. This means future interest calculations use a smaller balance, reducing total interest paid. The effect compounds over time - a $200 monthly extra payment can save $50,000+ on a 30-year mortgage.
Why Extra Payments Matter
Extra payments build equity faster, reduce total interest, and provide financial security. They also give you flexibility to refinance from a stronger position and help you become debt-free years earlier than scheduled. This is one of the most powerful wealth-building strategies.
Amortization Formula with Extra Payments
New Balance = Current Balance - (Regular Payment + Extra Payment - Interest)
Interest Calculation: Current Balance × Monthly Interest Rate
Principal Reduction: Total Payment - Interest
Time Savings: Original Term - New Term with Extra Payments
Interest Savings: Total Interest (Original) - Total Interest (With Extra Payments)
Step-by-Step Example
Example: $300,000 Mortgage at 6.5% with $200 Extra Payment
Step 1: Original Payment: $1,896/month for 30 years
Step 2: Monthly Interest Rate: 6.5% ÷ 12 = 0.542%
Step 3: First Month Interest: $300,000 × 0.00542 = $1,626
Step 4: Principal Reduction: ($1,896 + $200) - $1,626 = $470
Step 5: New Balance: $300,000 - $470 = $299,530
Step 6: Repeat process with decreasing balance
Step 7: Results: Payoff in 22 years instead of 30
Step 8: Interest Savings: ~$68,000 saved over loan lifetime
This example shows how $200 extra monthly payments save 8 years and $68,000 in interest, turning a 30-year mortgage into a 22-year mortgage.
Who Should Use This Calculator?
Homeowners
Accelerate mortgage payoff and build equity faster
Refinancers
Compare refinance savings vs extra payments
Financial Planners
Create optimal debt reduction strategies
Real Estate Investors
Maximize ROI on investment properties
Frequently Asked Questions
Should I make extra payments or refinance?
Compare interest rates. If current rates are 1%+ lower than your rate, refinancing may be better. Otherwise, extra payments avoid closing costs and achieve similar results.
How much should I pay extra?
Even $100 extra monthly makes a big difference. Start with what you can afford consistently. Many people round up payments or apply windfalls like tax refunds.
Do extra payments reduce my monthly payment?
No, they shorten your loan term. Your required monthly payment stays the same, but you'll finish paying earlier and save thousands in interest.
Can I skip extra payments if needed?
Yes. Extra payments are optional. Your regular payment schedule remains unchanged, giving you flexibility during financial hardship months.
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