How Much Extra Should I Pay on My Mortgage Each Month?
Free calculators for everyone — the 5–7 Year Alternative serves USA residents only.
"Pay extra on your mortgage" is easy advice to give and hard advice to size. Too little and you barely move the needle; too much and you're cash-poor. Here's how to think about it with real numbers.
The $200 test
On a $500,000 loan at 7%, adding $200 a month to principal takes the payoff from 30 years to about 25.1 years and saves roughly $133,600 in interest. That's meaningful money for the price of a nice dinner out each month.
The $500 jump
Bump it to $500 extra a month and the picture changes dramatically: payoff in about 20.6 years, interest saved around $252,500. You cut nearly a decade off the loan.
How to pick your number
Start with what you won't miss. The best extra payment is the one you can make every single month without stress — consistency beats size. A good rule: look at your monthly surplus after bills and savings, and commit half of it to principal. You can always increase later.
And always mark the extra payment for principal. Unmarked extra money may just prepay next month's bill instead of reducing your balance — call your servicer and confirm the designation.
Run both scenarios on your actual loan in our extra payment calculators — or see if you qualify for a structured 5–7 year payoff plan.
Calculations are illustrative only, based on the assumptions shown. Not financial advice, not a promise of savings or payoff time, and not a loan quote.
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Take the free quiz to see if you qualify for a structured payoff plan.
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