Effect of increasing monthly mortgage payment

Alternative name: Shorter repayment period calculator, Faster repayment of a mortgage calculator, reduced repayment time calculator

This calculator calculates how much shorter the repayment period will be on your loan when you increase the monthly amount (term amount).

Increasing your monthly repayment amount can reduce the time before you are debt-free by quite a bit. For example, if you have a loan of 1,000,000 with 3% interest and a monthly repayment of 7,000, and then your monthly deposit increases by 2,500, you will reduce the repayment period by almost five years.

By paying a little extra each month, you will be able to save a lot of interest expenses and at the same time reduce the time before you are debt-free. In the case of credit loans or other loans with high-interest rates, the effect of increased monthly repayments will be very large.

The calculation in this calculator is based on an annuity loan.

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Calculator results

Current time left: 18 years
Time left if you increase your monthly deposits: 15 years 5 months

Can I pay extra on a mortgage?

Yes, as long as you do not have a fixed-rate loan you can pay extra whenever you want.

Can you reduce your mortgage repayment period?

Yes, contact your bank so they can change the repayment period to whatever you want. The monthly amount will then increase.

Is it wise to repay a loan?

Yes, it's a good idea, but it's not necessarily the best financially. If you get a better return on the same money elsewhere, you will be left with more money by not repaying the loan. However, be aware that repayment of loans is risk-free, while many other investments have a risk associated with them. In addition, returns on various securities are rarely guaranteed.

Which loan should you pay off first?

The loan with the highest interest rate must always be paid first. Higher interest rates mean more expensive loans for you, which in turn means longer before you become debt-free.

Are loan repayments considered savings?

Repaying a loan is a form of saving because it increases your wealth. The interest portion of the repayment is considered an expense, while the instalment portion of the repayment is considered savings.