To estimate interest savings, compare the total interest under your regular mortgage schedule with the total interest under the accelerated payment strategy you are considering. Start with your current balance, interest rate, remaining term, and scheduled payment. Then create a second scenario that includes your additional principal payments. The difference between the two projected interest totals represents the estimated interest savings, assuming the loan terms and payment assumptions remain consistent. Paying additional principal earlier can generally produce greater savings because it reduces the balance used to calculate future interest sooner. Our mortgage payoff calculator can help you examine the effect of paying your mortgage faster. You can also use the mortgage calculator with extra payments to test different amounts and frequencies. Remember that calculator results are estimates and may not include every fee, servicing rule, or individual loan condition.
