Calculate how extra monthly payments and one-time lump sums reduce your 30-year mortgage balance, saving tens of thousands of dollars in compound interest.
Determine exactly how much money and time you shave off your home mortgage by paying an extra $100, $200, or $500 toward your loan principal every month. Features complete amortization schedules, compound interest comparisons, and PDF export statements.
Extra payments reduce your unpaid principal balance directly. Because monthly mortgage interest is calculated strictly on remaining principal, lowering the balance immediately reduces the future interest charges.
Paying extra monthly usually saves more interest because the principal balance drops 12 times a year rather than waiting for an annual bonus payment.