Bankrate.com has a mortgage payoff calculator where you can enter your loan terms and they’ll create a graph showing your balance and interest difference with a prepayment per month.
The full report also includes an amortization schedule and more information about what you’re saving in interest when you prepay.
For example, the chart below indicates what we would save if we paid an additional $100 towards our mortgage with each payment. We’d shorten our loan term by 5 years and 1 month and save over $35,000 in interest payments over the life of the loan.
Perhaps you don’t have an extra $100 per month to pay towards your mortgage payment, but maybe your payment is $895… why not add the extra $5 in and make it an even $900? Every little bit counts when it comes to paying down your principal balance – this means less interest paid in the end!