← All calculators

Mortgage Prepayment Calculator

Side-by-side comparison of refinancing vs. extra payments. See exactly how $100-200/month saves thousands and shaves years off your loan.

🎉 Interest you'll save — — months faster
Without extra payments — — months
With extra payments — — months
Total you'll pay —
Principal —
Interest —
These calculators provide estimates for educational purposes only. Results are not guaranteed and should not be treated as financial advice. Always consult a qualified professional before making major financial decisions.

Why this matters

On a $300,000 mortgage at 6.5% APR: refinance to 5.5% (with $6,000 in fees) saves $63,000. Adding $200/month extra instead saves $70,000 and gets you mortgage-free 8 years sooner — with zero upfront cost.

Frequently Asked Questions

Should I refinance or make extra payments?

If you have 15+ years left and can drop your rate by ≥0.75% after fees, refinance. If you're 10 years or less from payoff, extra payments almost always win.

How much extra mortgage payment saves the most?

Every dollar toward principal saves you your full interest rate on that dollar, compounded monthly. On a 6.5% mortgage, an extra $400/month saves roughly $70,000 in interest over 30 years.

Can I make extra payments on a 30-year mortgage?

Yes. There is no prepayment penalty on conforming mortgages. Check your loan documents for "prepayment penalty" — if it's not there, you're clear.

Is it better to pay extra on my mortgage or invest?

Mathematically, invest if your expected return exceeds your mortgage rate after tax deductions. Psychologically, mortgage freedom has value. Run both scenarios and pick the one that lets you sleep better.