Calculator tool
Making extra payments directly toward principal reduces your loan balance faster, shortening the loan term and saving significant interest. This calculator compares your current payment schedule to one with additional monthly contributions, showing you the exact months saved and dollars saved in interest.
Review the inputs carefully and treat the output as an estimate. For decisions involving money, taxes, health, law, or security, compare the result with trusted professional guidance when needed.
Do extra payments go toward principal?
Yes, as long as you specify they should be applied to principal. Contact your lender to confirm extra payments reduce principal immediately rather than being held for the next scheduled payment.
Is it better to invest extra money or pay off the mortgage?
It depends on your mortgage interest rate versus expected investment returns, your tax situation, and risk tolerance. Paying off a mortgage is a guaranteed return equal to your interest rate.
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