What extra payments save

Small payments today. Huge savings over time.

See what the Annual Tax Refund Strategy does to a $500,000 mortgage — then explore more scenarios below.

Loan type
Interest Saved$277,618
Time Saved126 months
Interest Rate7%
Strategy$7,500/year every year applied directly to principal
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Prepayment Scenarios

Adjust the loan above to match your situation, then open any scenario in the full calculator.
Annual Tax Refund Strategy
30-Year · 7%
Applying your annual tax refund to your mortgage principal each year can dramatically reduce your loan term. This strategy works especially well early in the loan when more of each payment goes toward interest.
Loan Details
Amount: $500,000
Rate: 7%
Term: 30 years
Monthly Payment: $3,327
Strategy$7,500/year every year applied directly to principal
Savings Summary
Total Without Strategy$1,197,544
Total With Strategy$919,926
Interest Saved$277,618
Time Saved126 months
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The One-Time Windfall
30-Year · 7%
Received an inheritance, sold a second vehicle, or landed a large bonus? Applying a lump sum directly to principal in the first few years can save tens of thousands in interest over the life of your loan.
Loan Details
Amount: $500,000
Rate: 7%
Term: 30 years
Monthly Payment: $3,327
Strategy$30,000 lump sum applied at year 3
Savings Summary
Total Without Strategy$1,197,544
Total With Strategy$1,057,470
Interest Saved$140,075
Time Saved51 months
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Early-Years Blitz
30-Year · 7%
Front-loading prepayments in the first two years maximizes savings because the outstanding principal — and the interest it generates — is at its peak. Two aggressive early payments can knock years off your loan.
Loan Details
Amount: $500,000
Rate: 7%
Term: 30 years
Monthly Payment: $3,327
Strategy$15,000 at year 1, then $15,000 at year 2
Savings Summary
Total Without Strategy$1,197,544
Total With Strategy$1,041,361
Interest Saved$156,184
Time Saved55 months
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Mortgage Accelerator
30-Year · 7%
Strategic annual prepayments can push your payoff date significantly earlier, building equity faster and cutting the total interest you pay over the remaining term.
Loan Details
Amount: $500,000
Rate: 7%
Term: 30 years
Monthly Payment: $3,327
Strategy$10,000/year for 2 years applied directly to principal
Savings Summary
Total Without Strategy$1,197,544
Total With Strategy$1,086,950
Interest Saved$110,594
Time Saved39 months
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$100/Month Extra
30-Year · 7%
Adding just $100 to your monthly mortgage payment might not sound like much, but over the life of your loan it adds up to a significant reduction in both interest paid and years remaining. Small, consistent actions compound over time.
Loan Details
Amount: $500,000
Rate: 7%
Term: 30 years
Monthly Payment: $3,327
Strategy$100 extra every month applied directly to principal
Savings Summary
Total Without Strategy$1,197,544
Total With Strategy$1,122,376
Interest Saved$75,168
Time Saved32 months
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Note: Savings are calculated based on standard amortization and may vary slightly depending on payment timing and lender terms. Use the Prepayment Calculator to model your specific loan.