Mortgage calculator with extra payments
See what an extra monthly payment does to your mortgage: the interest saved, the new payoff date and the amortization schedule with the extra principal included.
Amortization schedule
| Year | Principal | Interest | Extra | Balance |
|---|---|---|---|---|
| 1 | $3,685.96 | $20,585.48 | $3,600.00 | $312,714.04 |
| 2 | $4,173.92 | $20,097.52 | $3,600.00 | $304,940.12 |
| 3 | $4,694.53 | $19,576.91 | $3,600.00 | $296,645.59 |
| 4 | $5,250.05 | $19,021.39 | $3,600.00 | $287,795.54 |
| 5 | $5,842.77 | $18,428.67 | $3,600.00 | $278,352.77 |
| 6 | $6,475.17 | $17,796.27 | $3,600.00 | $268,277.60 |
| 7 | $7,149.90 | $17,121.54 | $3,600.00 | $257,527.70 |
| 8 | $7,869.84 | $16,401.60 | $3,600.00 | $246,057.86 |
| 9 | $8,638.02 | $15,633.42 | $3,600.00 | $233,819.84 |
| 10 | $9,457.62 | $14,813.82 | $3,600.00 | $220,762.22 |
| 11 | $10,332.09 | $13,939.35 | $3,600.00 | $206,830.13 |
| 12 | $11,265.15 | $13,006.29 | $3,600.00 | $191,964.98 |
| 13 | $12,260.70 | $12,010.74 | $3,600.00 | $176,104.28 |
| 14 | $13,322.92 | $10,948.52 | $3,600.00 | $159,181.36 |
| 15 | $14,456.29 | $9,815.15 | $3,600.00 | $141,125.07 |
| 16 | $15,665.53 | $8,605.91 | $3,600.00 | $121,859.54 |
| 17 | $16,955.80 | $7,315.64 | $3,600.00 | $101,303.74 |
| 18 | $18,332.45 | $5,938.99 | $3,600.00 | $79,371.29 |
| 19 | $19,801.30 | $4,470.14 | $3,600.00 | $55,969.99 |
| 20 | $21,368.56 | $2,902.88 | $3,600.00 | $31,001.43 |
| 21 | $23,040.73 | $1,230.71 | $3,600.00 | $4,360.70 |
| 22 | $4,060.70 | $34.79 | $300.00 | $0.00 |
Why extra principal pays off
Each extra dollar you pay toward principal stops accruing interest for the rest of the loan. On a 30-year mortgage the effect is large early on, when the balance is high: an extra $300 a month can remove many years from the loan and save tens of thousands in interest.
Tell the servicer that extra money is for principal, and check the next statement. A recast or a refinance are other ways to benefit from a lump sum.
$320,000 loan: 15-year vs 30-year
On a $320,000 mortgage, a 30-year loan at 6.5% costs $2,022.62 a month in principal and interest and $408,141 in total interest. A 15-year loan at a rate about 0.6 points lower costs $2,683.08 a month, $660.46 more, but cuts the interest to $162,956, saving $245,185. The right choice depends on whether the higher payment fits your budget with room to spare.
| Loan | Principal & interest | Total interest | Total paid |
|---|---|---|---|
| 10-year at 5.9% | $3,536.61 | $104,393 | $424,393 |
| 15-year at 5.9% | $2,683.08 | $162,956 | $482,956 |
| 20-year at 5.9% | $2,274.16 | $225,797 | $545,797 |
| 30-year at 6.5% | $2,022.62 | $408,141 | $728,141 |
What each 6.5% ± 1 point does to the payment
A one-point change in your mortgage rate moves the payment on $320,000 by roughly $214.87 a month and the lifetime interest by about $77,350 over 30 years. That is why it pays to compare several lenders on the same day.
| Rate | Principal & interest | Total interest | Difference vs 6.5% |
|---|---|---|---|
| 5.5% | $1,816.92 | $334,095 | −$74,045 |
| 6% | $1,918.56 | $370,683 | −$37,457 |
| 6.5% | $2,022.62 | $408,141 | +$0 |
| 7% | $2,128.97 | $446,427 | +$38,286 |
| 7.5% | $2,237.49 | $485,491 | +$77,350 |
Down payment and PMI on a $400,000 home
With less than 20% down, lenders charge private mortgage insurance (PMI), commonly 0.3% to 1.5% of the loan per year. This page assumes 0.6%. PMI usually ends when you reach 80% of the home's original value, which you can reach sooner with extra payments.
| Down payment | Loan amount | PMI / month | Total monthly payment |
|---|---|---|---|
| 5% ($20,000) | $380,000 | $190.00 | $3,083.53 |
| 10% ($40,000) | $360,000 | $180.00 | $2,947.11 |
| 20% ($80,000) | $320,000 | $0.00 | $2,514.29 |
What $200 extra a month does
On this $320,000 loan, adding $200 a month in extra principal shortens the loan by 6 years and 7 months and saves $105,428 in interest. The effect is largest early on, because that is when most of each payment goes to interest.
What income does a $400,000 home need?
Lenders often look at a front-end ratio of about 28% of gross income for housing costs. A total payment of $2,514.29 implies a gross income near $108,000 a year, and lenders also weigh your other debts, which usually must keep total payments under about 36% to 43% of income.
Year one is interest-heavy: $20,695 of interest against $3,577 of principal repaid, which is why extra payments early on have the most effect.
How fast you build equity
Equity here is the home price minus the loan balance, assuming the price stays flat. Appreciation, if any, would add to it.
| After | Loan balance | Principal repaid | Equity (flat value) |
|---|---|---|---|
| 5 years | $299,555 | $20,445 | $100,445 |
| 10 years | $271,283 | $48,717 | $128,717 |
| 15 years | $232,189 | $87,811 | $167,811 |
| 20 years | $178,128 | $141,872 | $221,872 |
Frequently asked questions
What is the monthly payment on a $320,000 mortgage?
At 6.5% over 30 years, principal and interest on $320,000 is $2,022.62. With the estimated tax, insurance, HOA and PMI above, the total comes to about $2,514.29 a month.
What is included in a monthly mortgage payment?
Principal and interest are the loan itself. Many lenders also collect property tax and homeowners insurance in escrow, and charge PMI if your down payment is under 20%. HOA dues are paid separately.
How can I pay off my mortgage faster?
Add extra principal each month, make one extra payment a year, or refinance to a shorter term. Use the extra payment field above to see the interest you would save.
Are these numbers a loan offer?
No. They are estimates from standard formulas. Your lender’s quote can differ because of fees, rounding, escrow and your credit profile.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.