How much interest can you save by increasing your mortgage payment? This financial calculator helps you find out. View the report to see a complete amortization payment schedule, and how much you can save on your mortgage!
Save on interest by increasing your mortgage payment
- Original mortgage amount
- The original amount financed with your mortgage, do not confuse this with the remaining balance or principal balance.
- Interest rate
- Annual interest rate for this mortgage.
- Original amortization
- The number of years over which you will repay this loan. The most common mortgage amortization periods are 20 years and 25 years.
- Payment type
The payment type determines the frequency of payments. Monthly will have 12 payments per year, weekly 52, bi-weekly 26 and bi monthly 24.
Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. We calculate an accelerated weekly payment, for example, by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands in interest and take years off of your mortgage.
The accelerated bi-weekly payment is calculated by dividing your monthly payment by two. You then make 26 bi-weekly payments. Just like the accelerated weekly payments you are in effect paying an additional monthly payment per year.
- Years Remaining
- Total number of years remaining on your original mortgage.
- Additional payment
- Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the selected additional payment frequency.
- Additional payment frequency
- The frequency of prepayment. The options are weekly, bi-weekly, semi-monthly, monthly, yearly and one-time payment.
- Report amortization
- Choose how the report will display your payment schedule. Annually will summarize payments and balances by year. Monthly will show every payment for the entire term.
- Current mortgage payment
- Your principal and interest payment (PI) per period.
- Total scheduled payments
- Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.
- Total accelerated payments
- Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal.
- Accelerated savings
- Total amount of interest you will save by prepaying your mortgage.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.