Should I pay extra or refinance?

If your rate is already low, extra principal often beats refinancing because it avoids closing costs. If your rate is materially higher than current rates, refinancing may help more — compare both.

Are biweekly payments the same as one extra payment a year?

Roughly. Twenty-six biweekly payments equal thirteen monthly payments, so you make about one extra payment per year of principal-and-interest.

Extra Payment Calculator

Find out how much sooner you can pay off your mortgage — and how much interest you can save — with extra monthly or one-time payments.

Extra Payment Plan

Generated … · Assumption set 2026-04-30

New payoff (with extras)

$2,022.62/mo

23 yr 5 mo

Time saved

6 yr 7 mo

Interest saved

$105,427.85

New payoff date

Oct 1, 2049

Total interest (with extras)

$302,712.79

Compared to no extras

Original total interest$408,140.64

Original payoff2056-05-01

Original number of payments360

Comparison chart

Show data table

Scenario	Monthly	Total interest
No extras	$2,022.62	$408,140.64
With extras	$2,022.62	$302,712.79

Assumptions used

Assumption set 2026-04-30

Loan amount: $320,000calculated
Annual interest rate: 6.50%user input
Loan term: 30 yearsuser input
Extra monthly payment: $200user input
One-time extra: $0 at month 12user input

How this calculator works

Extra principal payments shrink the balance you pay interest on every month afterward. Even small extras compound into years saved off the term and large reductions in lifetime interest.

Reviewed for calculation accuracy and clarity by Mortgage Well calculation team · April 30, 2026

When to use this

You have spare monthly cash flow and want to know whether early payoff is worth it.
You received a windfall (bonus, tax refund) and want to see the impact of a one-time lump sum.
You're comparing extra principal against refinancing or recasting.

Methodology

We run two amortization schedules side by side: a baseline with no extras, and an accelerated version that applies your monthly and one-time extras as additional principal. The difference in total interest and number of payments is your savings.

interest_saved = baseline_total_interest - accelerated_total_interest
months_saved = baseline_months - accelerated_months

Assumptions

Extra principal is applied at the period scheduled (monthly extras start at month 1 unless otherwise constrained).
Interest rate, term, and scheduled payment do not change — only the principal balance.
We don't model prepayment penalties; check your loan documents for any.

Example

On a $320,000 loan at 6.5% over 30 years, an extra $200/month can shorten the loan by about 5 years and save tens of thousands in interest.

Frequently asked

Should I pay extra or refinance?: If your rate is already low, extra principal often beats refinancing because it avoids closing costs. If your rate is materially higher than current rates, refinancing may help more — compare both.
Are biweekly payments the same as one extra payment a year?: Roughly. Twenty-six biweekly payments equal thirteen monthly payments, so you make about one extra payment per year of principal-and-interest.

Estimates only. This calculator is not a loan offer, loan approval, official Loan Estimate, Closing Disclosure, tax advice, legal advice, or financial advice. Actual payments, rates, taxes, insurance, mortgage insurance, closing costs, and loan terms may vary. Contact a qualified lender, tax professional, or financial advisor for guidance.