Extra Mortgage Payment Calculator
Add $200 a month to a $350,000 30-year mortgage at 7.28%. It's paid off in 23 years 6 months, which is 78 months early. It also saves $130,440 in interest.
Rates here start at the Freddie Mac PMMS average for the week of October 1, 2026: 7.28% on a 30-year fixed and 6.6% on a 15-year fixed. That survey is an average. It reflects borrowers with strong credit and about 20% down. Your quoted rate can be higher or lower. The 2026 conforming loan limit (FHFA) is $832,750 in most counties and up to $1,249,125 in high-cost areas.
Why extra principal saves so much
Interest each month is the remaining balance × the monthly rate. That's the whole trick. Every extra dollar of principal lowers the balance right away. So that dollar stops making interest for the rest of the loan. Your required payment stays the same. But more of each later payment goes to principal, and the loan ends early.
- Standard payment on $350,000 at 7.28%: $2,394.74.
- Month 1 interest: $350,000 × 7.28% ÷ 12 = $2,123.33; scheduled principal $271.41, plus $200 extra.
- Repeating that every month, the balance hits zero after 282 payments instead of 360.
- Interest falls from $512,107 to $381,668: saved $130,440.
Some people pay half the payment every two weeks instead. That's 26 half-payments a year, or one extra full payment. In other words, it works like adding $199.56 a month. Here it would save $130,236 and cut 77 months.
Check one thing first. Your servicer should apply extra money to principal, not to next month's payment.
Savings by extra monthly amount
| Extra per month | Payoff time | Months saved | Interest saved |
|---|---|---|---|
| $50 | 28 years 0 months | 24 | $41,991 |
| $100 | 26 years 3 months | 45 | $76,507 |
| $200 | 23 years 6 months | 78 | $130,440 |
| $300 | 21 years 5 months | 103 | $171,103 |
| $500 | 18 years 3 months | 141 | $229,188 |
| $1,000 | 13 years 7 months | 197 | $310,882 |
Frequently asked questions
Is it better to pay extra on the mortgage or invest?
Extra principal earns a guaranteed return equal to your mortgage rate (7.28% here). Investing may earn more. It may also earn less. Many people first build an emergency fund, get any 401(k) match and pay off higher-rate debt.
Do extra payments lower my monthly payment?
No. On a standard fixed-rate loan, extra principal shortens the term. The required payment stays the same. The exception is a recast. Some servicers will recast the loan for a fee, and that lowers the payment.
Is there a prepayment penalty?
Most current U.S. home loans have none. Federal rules limit them on qualified mortgages. Check your note or closing disclosure to be sure.
Does extra principal remove PMI sooner?
Yes. On a conventional loan you can ask to cancel PMI once the balance reaches 80% of the original value. Extra payments get you to 80% faster.
Related calculators
Sources
- Freddie Mac, Primary Mortgage Market Survey (week of October 1, 2026)
- FHFA, Conforming Loan Limit Values for 2026
- HUD, FHA Mortgage Limits lookup
- CFPB, What is a debt-to-income ratio?
- CFPB, When can I remove private mortgage insurance (PMI)?
- Freddie Mac, Breaking down PMI
- HUD Mortgagee Letter 2023-05 (FHA annual MIP reduction)
Updated: October 2, 2026 · Sources and methodology