Making extra payments on your mortgage reduces your balance faster, cuts the total interest you pay, and moves your payoff date forward. How much faster depends on your loan balance, interest rate, and how much extra you add each month.

This calculator shows you exactly where you stand. Enter your remaining balance, rate, and term — then add any extra monthly amount to see your new payoff date, how many months you save, and how much interest you keep in your pocket. For borrowers weighing whether that same money might do more in an investment account, the calculator runs that comparison too and shows both paths on a chart.

Mortgage Extra Payment Calculator

See how much faster you pay off your loan — and how much interest you save — by adding any amount to your monthly payment. Then compare that path against investing the same money instead.

Check this first: If your employer offers a 401(k) match and you're not capturing it, fund that before running these numbers. A 50% employer match is a guaranteed 50% return before any investment growth counts. Nothing in this calculator competes with that.
Your Numbers
$
%
yrs
$
3% — Conservative 7% — Historical avg 12% — Aggressive
—New payoff date
—Time saved
—Interest saved
—Total interest paid
How does that compare to investing the same amount? →
Extra Payment Path
—Estimated payoff date
—Time saved vs. standard schedule
—Interest saved
—Total interest paid
Investing Path (same amount monthly)
—Investment value at original payoff date
—Additional interest paid vs. paydown path
—Net advantage of investing
—Minimum return needed to beat paying down
Loan Balance & Investment Value Over Time
Standard balance
Accelerated balance
Investment value
This calculator is for illustrative purposes only. Investment returns shown are hypothetical and not guaranteed. Past market performance does not predict future results. Tax implications — including the mortgage interest deduction, capital gains, and retirement account advantages — are not reflected and may significantly affect your real-world outcome.  Read Morningstar's analysis: Pay Down Your Mortgage or Invest? →

Common Questions

How much faster do I pay off my mortgage with extra payments?

It depends on your loan balance, interest rate, remaining term, and how much extra you pay each month. On a typical 30-year mortgage at 6.5%, adding $300 per month can shave 6 to 8 years off the loan and save tens of thousands in interest. The calculator above shows the exact numbers for your situation.

Is it better to make extra mortgage payments or invest?

It depends on your rate and what you expect investments to return. Paying extra on your mortgage is a guaranteed return equal to your interest rate — no risk, no volatility. Investing in the market has historically returned more over long periods, but there's no guarantee. At today's rates near 6.5%, the math is much closer than it was when rates were 3%. The calculator shows which path comes out ahead based on your own assumptions.

Should I fund my 401(k) before paying down my mortgage?

If your employer offers a match and you're not maxing it out, yes — fund that first. A 50% employer match is a guaranteed 50% return on your contribution before investment growth even begins. That's a return no mortgage paydown strategy can match. Once you're capturing the full employer match, then the extra payment versus investing question becomes worth running through a calculator like this one.

What investment return should I use?

7% per year is the most commonly used long-term average for a diversified stock portfolio, based on historical S&P 500 performance. Conservative investors often use 5–6%. More aggressive assumptions go to 9–10%. The key thing to remember: investment returns are never guaranteed, while paying down your mortgage delivers a guaranteed return equal to your rate. The slider in this calculator lets you adjust the assumption and see how the answer changes.

What is the breakeven return rate?

The breakeven rate is the annual investment return your money would need to earn for the investing path to exactly equal the mortgage paydown path. Above that rate, investing wins. Below it, paying down your mortgage wins. The breakeven is usually close to your mortgage interest rate, though the exact number depends on your loan details. The calculator shows it for your specific inputs.

Does making extra payments reduce my interest rate?

No. Extra payments do not change your interest rate. They reduce your outstanding principal balance faster, which means less of each future payment goes toward interest. The result is a shorter loan term and less total interest paid — but the rate itself stays the same.

Can I make extra mortgage payments on any loan type?

Most conventional, FHA, and VA loans allow extra payments with no prepayment penalty. Some older loans or certain non-QM products may have prepayment penalties in the early years — check your loan documents if you're not sure. For most borrowers with standard mortgage products, extra payments go directly toward reducing your principal balance.

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