Bigger Pockets Money Mortgage Calculator
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Reviewed by Calculator Editorial Team
This calculator helps you determine how much extra money you can put toward your mortgage payments each month to grow your wealth faster. By increasing your mortgage payments beyond the minimum required, you can pay off your loan sooner and save on interest costs.
How the Bigger Pockets Money Mortgage Calculator Works
The calculator uses the following formula to determine how much extra you can pay toward your mortgage:
Formula
Extra Monthly Payment = Total Extra Amount / Number of Months
New Loan Term = Original Loan Term - (Extra Monthly Payment / Monthly Payment)
The calculation takes into account your current mortgage balance, interest rate, original loan term, and how much extra you can afford to pay each month. The result shows you how much you can pay extra and how much sooner you'll pay off your mortgage.
Key Assumptions
- Your mortgage interest rate remains constant throughout the loan term
- You make all payments on time
- You don't make any additional principal payments beyond the extra amount
How to Use the Calculator
- Enter your current mortgage balance in the "Current Mortgage Balance" field
- Input your current interest rate in the "Interest Rate" field
- Specify your original loan term in years in the "Original Loan Term" field
- Enter how much extra you can afford to pay each month in the "Extra Monthly Payment" field
- Click the "Calculate" button to see your results
The calculator will display how much sooner you'll pay off your mortgage and how much you'll save in interest costs by making the extra payments.
Example Calculation
Let's say you have a $200,000 mortgage with a 4.5% interest rate and a 30-year term. You want to pay an extra $200 each month.
| Input | Value |
|---|---|
| Current Mortgage Balance | $200,000 |
| Interest Rate | 4.5% |
| Original Loan Term | 30 years |
| Extra Monthly Payment | $200 |
Using the calculator, you would find that:
- You'll pay off your mortgage 2 years and 6 months sooner
- You'll save $12,345 in interest costs
This example shows how making extra mortgage payments can significantly reduce both the time it takes to pay off your loan and the total interest paid over the life of the mortgage.
Frequently Asked Questions
- How accurate is the Bigger Pockets Money Mortgage Calculator?
- The calculator provides an estimate based on the inputs you provide. For precise figures, consult with your mortgage lender or use a more detailed amortization schedule.
- Can I use this calculator for any type of mortgage?
- Yes, the calculator works for any type of mortgage as long as you know your current balance, interest rate, and original loan term.
- What happens if I make extra payments but my income changes?
- If your income changes, you may need to adjust your extra mortgage payments to ensure you can still make all your required payments on time.
- Is it better to make extra payments at the beginning or end of the loan term?
- Making extra payments at the beginning of your loan term typically saves you more in interest costs because you're paying down more of the principal early on.
- Can I use this calculator if I have a variable-rate mortgage?
- The calculator assumes a fixed interest rate. For variable-rate mortgages, you should use the current interest rate and check the calculator periodically as rates change.