Mortgage lump sum calculator
What one extra payment against the loan saves in interest and time, and how much that depends on when you make it.
$
%
An example. Your lender sets the real rate.
years
$
Interest saved by $10,000 at the end of year 1
$50,537
And the loan finishes 2 yr 5 mo early. The monthly payment does not change.
| Paid at the end of year | Interest saved | Finishes early by |
|---|---|---|
| 1 | $50,537 | 2 yr 5 mo |
| 5 | $37,546 | 1 yr 11 mo |
| 10 | $24,976 | 1 yr 5 mo |
| 15 | $15,616 | 1 year |
| 20 | $8,698 | 9 months |
| 25 | $3,614 | 6 months |
The same amount paid at different points in the same loan. It assumes the whole sum goes against principal on the day, with no fee for paying early; some lenders charge one or apply extra money to the next instalment instead. It does not count what the money could have earned elsewhere, and it does not say whether to pay a mortgage down.
Questions
- Why does the same amount save less later on?
- Interest is charged on what you still owe. Money paid off in year one stops being charged interest for the rest of the loan; the same money paid in year twenty has far fewer years left to save on.
Have a site of your own?
This calculator can be shown on your page with two lines of HTML. Free, with no account, no script and no ads.
Put this calculator on your site