Mortgage Payment Formula:
Remaining Balance Formula:
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This calculator helps you determine your monthly mortgage payment, remaining balance after a period, and the impact of making extra payments on your mortgage.
The calculator uses standard mortgage formulas:
Where:
Details: Making extra payments reduces your principal faster, which decreases the total interest paid and can significantly shorten your loan term.
Tips: Enter the principal amount, interest rate (annual percentage), loan term in months, and any extra payment you plan to make. The calculator will show your regular payment, payment with extra, remaining balance after 1 year, and interest saved.
Q1: How much can I save with extra payments?
A: Even small extra payments can save thousands in interest and reduce your loan term by years.
Q2: Should I pay extra principal or refinance?
A: This depends on your interest rate and how long you plan to stay in the home. Use this calculator to compare options.
Q3: How does remaining balance change over time?
A: Early in the loan, most payments go toward interest. As principal decreases, more goes toward principal.
Q4: Are there prepayment penalties?
A: Most modern loans don't have prepayment penalties, but check your loan terms to be sure.
Q5: Is it better to make extra payments monthly or yearly?
A: More frequent extra payments (monthly) save more interest due to compounding, but any extra helps.