Calculators / Additional Payment Calculator
Additional Payment Calculator
See how a little extra each month, or one lump sum, cuts years and thousands in interest off your loan. Then get pre-approved in one day.
$250 EXTRA A MONTH$126,604
Interest saved on a $350,000 loan
NEXT STEP
Yes. Is Closer Than You Think.
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See What Extra Payments Earn You
The results compare your loan with and without extra payments. The cards below use the $250-a-month example further down this page.
NEW PAYOFF TIME22.8 years
When your loan ends with the extra payments.
Time saved
7.2 yearsYears and months cut from your loan.
Interest saved
$126,604What you keep instead of paying the lender.
New total interest
$319,802Your reduced interest cost.
How Extra Payments Cut Your Interest
Every extra dollar goes straight to principal. A lower balance means less interest every month after.
THE FORMULANew balance = Old balance − (Principal paid + Extra payment)
Extra payment = any amount you add on top of your regular payment.
01
Loan Amount
What you owe.
02
Interest Rate
Your annual rate.
03
Loan Term
Years left on the loan.
04
Extra Monthly Payment
A set amount added to each payment.
05
One-Time Payment (optional)
A lump sum from a bonus or tax refund.
See Extra Payments in Action
Owe $350,000 at 6.5% over 30 years? Load it and add $250 a month.
| Item | Example |
|---|---|
| Regular payment | about $2,212 |
| Extra each month | $250 |
| New payoff time | about 22.8 years |
| Time saved | about 7.2 years |
| Interest saved | about $126,604 |
What Changes Your Savings
Extra Amount
Bigger extras save more.
Timing
Earlier extra payments save the most.
Interest Rate
A higher rate makes each extra dollar worth more.
Loan Balance
More principal means more interest to save.
Time Left
More years remaining gives extras longer to work.
Prepayment Rules
Confirm your loan has no penalty for extra payments.
The questions buyers ask most
Straight answers to what buyers search before they talk to a lender.
$50/MO=$34,081saved
SMALL EXTRAS
How Much Can a Small Extra Payment Save?
Even $50 a month on the example loan saves about $34,081 and trims about 2 years. Small amounts add up because they start working at once.
- $50 a month: saves about $34,081
- $100 a month: saves about $62,627
- $250 a month: saves about $126,604
- Every extra dollar starts cutting interest right away
LUMP SUM
Is a Lump Sum Better Than Monthly Extras?
Both work. One $10,000 payment in the first year saves about $54,713 and takes about 2.4 years off the loan. Monthly extras build the habit. A lump sum works hard early.
| Option | Interest saved | Time saved |
|---|---|---|
| $10,000 once, year 1 | about $54,713 | about 2.4 years |
| $50 every month | about $34,081 | about 2 years |
PAY OR INVEST
Should I Pay Extra or Invest the Money?
Extra payments give a guaranteed return equal to your rate. Investing can earn more or less. We'll help you see your loan side by side with your goals.
PAY EXTRA6.5%
Guaranteed, equal to your rate
INVESTVaries
Can earn more or less
What Extra Monthly Payments Could Save
A $350,000 loan at 6.5% over 30 years. Without extra payments you pay about $446,406 in interest.
| Extra each month | New payoff time | Interest saved |
|---|---|---|
| $0 | 30.0 years | $0 |
| $50 | 28.1 years | $34,081 |
| $100 | 26.5 years | $62,627 |
| $250EXAMPLE | 22.8 years | $126,604 |
| $500 | 18.6 years | $193,603 |
Examples are for illustration and do not determine eligibility. Confirm your servicer applies extra payments to principal.
Additional Payment Calculator FAQs
Quick answers to the questions borrowers ask most about paying extra.
Have a question? Ask us.
Our loan officers will walk you through your numbers, no pressure and no obligation.
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How do extra payments work?
Extra funds reduce your principal. You owe less, so you pay less interest each month, and the loan ends sooner.
Do I need to tell my servicer?
Yes. Mark the extra amount as principal-only so it is applied correctly.
Is there a prepayment penalty?
Most mortgages have none. Check your loan documents or ask your servicer.
Is it better to pay extra early in the loan?
Yes. Early payments cut the most interest because your balance is highest.
Can I stop or change extra payments?
Yes. Extra payments are optional. Your required payment stays the same.
Is a calculator the same as pre-approval?
A calculator gives an estimate. Pre-approval checks your income, credit and assets. We can pre-approve you in one day.
Keep Planning Your Payoff
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Loan amount$380,000
5% down30 yr
Rate (example)6.5%
$3,202/mo
P&I $2,402Taxes $600
This calculator provides estimates for informational purposes only. It is not a loan offer, pre-approval or commitment to lend. Actual rates, payments, mortgage insurance and eligibility depend on credit, income, property and program guidelines. Equal Housing Lender.
Savings depend on timing and how your servicer applies payments.
Equal Housing Opportunity · Austin Capital Mortgage, a brand of Aspire Home Loans, LLC, NMLS #1955132. The Earned Equity Program is offered through a correspondent relationship with Arrive Home™ LLC.
For informational purposes only; not a commitment to lend, an offer of credit, or legal or tax advice. A buyer does not hold title to the home at origination; title transfers upon payoff or refinance.
Qualification is subject to underwriting approval; program terms and availability are subject to change. Not available in Alaska or New York.
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