How much does paying extra on my mortgage save?
Every extra dollar of principal removes all the future interest that dollar would have accrued, so extra payments shorten the loan and cut total interest. The size of the savings depends on your rate, balance and how early you start.
Mortgage Payoff · Written by Anil Aggarwal, Realtor® | Mortgage Loan Officer · Updated August 8, 2026
Extra principal early in the loan does the most work, because that is when the balance — and therefore the interest — is largest.
Confirm with your servicer that extra amounts are applied to principal rather than held as a prepaid future payment.
Compare the guaranteed savings from prepaying at your mortgage rate against other uses of the money: employer retirement matches, higher-rate debt, or cash reserves.
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Educational only: The calculators and information on this website are for educational and illustrative purposes only. Results are estimates based on the information and assumptions entered and are not a loan offer, commitment to lend, financial advice or guarantee of eligibility, rates, costs or savings. Actual loan terms, rates, fees, mortgage insurance and qualification requirements vary by borrower, property, lender and loan program. Speak with a licensed mortgage professional for personalized information.