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Extra Payment Calculator
See what a little extra principal each month does to your payoff date and total interest.
Extra payments vs. recasting: different goals
Making extra principal payments without recasting pays off the loan faster and saves more total interest, but your required monthly payment stays the same. Recasting lowers the required payment, which improves cash flow. The right tool depends on the goal:
- Payment relief: apply a lump sum and recast.
- Faster payoff: make extra payments and keep the original payment.
- Both: recast to drop the required payment, then keep sending extra on top.
What the extra payment math shows
Every extra dollar of principal stops accumulating interest for the rest of the loan. This tool shows the two things that matter: how much sooner the loan is paid off, and how much total interest you avoid. Even a modest recurring extra payment compounds into meaningful savings, because the interest it saves also stops accruing interest.
Stack the strategies
If your rate is high, above about 6%, the guaranteed return from paying down the mortgage is competitive with market averages. In that case you might recast for the lower required payment and keep making extra payments to build a faster payoff from that lower floor. This tool models the extra-payment side; the recast calculator models the payment-reduction side.
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