Add Money to Mortgage Payment Calculator

Adding extra money to your mortgage payments can significantly reduce your payoff date and save you thousands in interest. This calculator helps you determine exactly how much you'll save by making additional payments.

How to Use This Calculator

To use the Add Money to Mortgage Payment Calculator:

Enter your current mortgage balance
Input your current interest rate
Specify your current monthly payment
Enter the amount you want to add to your monthly payment
Click "Calculate" to see your results

The calculator will show you how much you'll save in interest and how much earlier you'll pay off your mortgage.

How It Works

This calculator uses the amortization formula to determine how additional payments affect your mortgage payoff date. The key formula is:

Number of Payments = -log(1 - (Balance × Interest Rate / Monthly Payment)) / log(1 + Interest Rate)

The calculator compares the original payoff date with the new payoff date when you add extra payments to your monthly payment.

Note: This calculator assumes you make all payments on time and that your interest rate remains constant. It does not account for prepayment penalties or changes in interest rates.

Example Calculation

Let's say you have a $200,000 mortgage with a 4% interest rate and you're currently paying $1,200 per month. If you add $200 to your monthly payment, here's what the calculator would show:

Scenario	Monthly Payment	Payoff Date	Interest Paid
Original Payment	$1,200	December 2030	$120,000
With Extra $200	$1,400	June 2026	$80,000

In this example, adding $200 per month saves you $40,000 in interest and pays off your mortgage 4 years and 6 months earlier.

Frequently Asked Questions

How much can I save by adding extra payments to my mortgage?

The amount you save depends on your current mortgage balance, interest rate, and how much you can add to your monthly payment. Generally, adding even small amounts can significantly reduce your payoff date and interest paid.

Is it better to add extra payments or refinance?

Adding extra payments is often more cost-effective than refinancing because you're not paying closing costs. However, if your interest rate is significantly lower, refinancing might be better. Consider both options to see which saves you more money.

How does adding extra payments affect my credit score?

Making additional mortgage payments can improve your credit score by demonstrating responsible financial behavior. However, it's important to make all payments on time to maintain a good credit score.