TOOLS / EXTRA PAYMENT
Paying it off early
What an extra amount each month does to the term and the total interest.
Your loan
On top of your normal payment, applied to principal.
Interest you would not pay
$89,850
Paid off 9 yr 11 mo sooner, on $200 a month.
Side by side
Normal payment$1,158
With the extra$1,358
Paid off in, normally30 yr
Paid off in, with the extra20 yr 1 mo
Total interest, normally$236,851
Total interest, with the extra$147,002
Saved$89,850
Every extra dollar goes against principal, and principal you never owe is interest you never pay. That is the entire mechanism. There is no trick to it, and anyone charging you a fee to set up a biweekly plan is selling you arithmetic you can do yourself.
Tell your servicer in writing to apply extra money to principal. Otherwise a lot of them hold it as a prepaid regular payment, which does almost nothing.
Worth comparing against paying off higher-rate debt first. If you are carrying a card above this rate, that money works harder there.
This is a planning estimate, not an offer, an appraisal, a quote, or a commitment. Everything runs in your browser: no figure you type here is sent anywhere or stored.