Calculate Midterm Mortgage Prepayment Savings If Moving Before Mortgage is Paid Off

Midterm Mortgage Savings Calculator Sign

Not planning to stay in your current home until the mortgage is paid off?

Want to be able to afford a nicer next home?

If you answered "Yes" to both of those questions, then you've come to the right place.

This mid-term extra payment saving calculator will calculate the interest you will save if you add a prepayment amount to any number of your future mortgage payments.

In turn, you can then use the additional equity and prepayment interest savings to purchase a nicer next home!

Only Applicable Savings Makes Sense

As pointed out by the insightful visitor, if you only plan to stay in your current home for 8-10 years, then it doesn't make much sense to calculate prepayment savings over the life of the home loan.

So, unlike most mortgage prepayment calculators, this mortgage prepayment calculator is designed to calculate prepayment savings based on the number of years you plan to stay in your current home.

Other Interest-Saving Prepayment Calculators

If you would like to calculate the prepayment savings from now until the mortgage is completely paid off, please use the Prepay Mortgage Calculator instead -- which includes a list of things you should consider before prepaying your mortgage.

Or, if you would like to calculate the savings for a combination of one-time, monthly, and annual prepayments, please visit the Extra Payment Mortgage Calculator.

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Midterm Mortgage Savings Calculator

Calculate midterm mortgage prepayment savings for when you don't plan to stay in your present home until the mortgage is paid off.

Special Instructions

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Orig loan:Original loan:Original loan amount:Original home loan amount:

Original home loan amount:

Enter the dollar amount of the original home loan (principal borrowed) without the dollar sign.

Rate:Interest rate:Annual interest rate:Annual interest rate:

Annual interest rate:

Enter the annual percentage rate (APR) of the home loan without the percent sign (for 6.5%, enter 6.5).

Orig years:Original years:Original term in years:Original home loan term in number of years:

Original home loan term in number of years:

Enter the original repayment term of the house loan in number of years (whole years only, i.e., no decimal point).

Pmts made:# pmts made:Number of payments made:Number of payments already made:

Number of payments already made:

Enter the number of monthly house payments you have already made. If you have not made any payments, leave blank or enter a zero.

Prepay:Monthly prepay:Monthly prepayment amount:Monthly mortgage prepayment amount:

Monthly mortgage prepayment amount:

Enter the monthly amount you can afford to add to your existing payment to prepay your mortgage, without the dollar sign.

Periods to apply prepayments:Periods to apply prepayments:Number of periods to apply prepayments:Number of periods to apply prepayments:

Number of months or years to apply prepayments:

Enter the number of months or years you will continue to add the prepayment amount to the existing payment.

Remain yrs:Remain years:Years in current home:Years you plan to stay in current home:

Number of years you plan to stay in current home:

Enter the number of years you plan to stay in your current home. The mortgage savings calculator will calculate mortgage prepayment savings for the entered number of years, or until the mortgage is paid off -- whichever is sooner.

Payoff:Current payoff:Current payoff amount:Current mortgage payoff amount:

Current mortgage payoff amount:

Based on your entries, this is how much you still owe (principal balance) on your mortgage after deducting all of the principal payments you have already made.

Crnt pmt:Current pmt:Current monthly payment:Current monthly P & I payment:

Current monthly principal and interest payment:

Based on your entries, this is the amount of your current monthly principal and interest (PI) payment. This does not include property tax or insurance payments. If this result does not closely match your actual payment, please check that you have entered the correct beginning balance, term, interest rate, and number of payments made.

New pmt:New payment:New monthly payment:New monthly principal and interest payment:

New monthly principal and interest payment:

Based on your entries, this is your current monthly payment plus the prepayment amount you entered in the top section of the mortgage savings calculator.

Int save:Interest savings:Prepayment interest savings:Interest saved by making monthly prepayment:

Interest saved by making monthly prepayment:

Based on your entries, this is how much interest you will save if you add the prepayment amount for the number of months/years you entered, and if you stay in the home for the entered number of years.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools


How prepayments create savings, and how to make prepayments on your next home.

How Do Prepayments Create Mortgage Interest Savings?

When you take out a loan to purchase a home, the monthly payment is based on the number of years you plan to take to repay the loan.

Each month during the life of the repayment, the bank calculates the interest portion of each payment on the total balance of the loan. The interest is then subtracted from the payment -- leaving the amount that is used to reduce how much you owe (principal portion).

This means that if you make a payment over and above the prescribed payment amount ...

You will have lowered the amount you will be charged interest on for every single month of your remaining repayment term!

This is because each time the bank goes to calculate interest, the amount you will be charged interest on will be lower than what the original payment amount was based on.

In other words, when you add an amount to your current prescribed payment, you haven't just created mortgage interest savings on your next payment, but you also have created mortgage interest savings for every month for the rest of the repayment term.

And this is true for every time you add a prepayment amount to your existing payment.

Even if you only make a single, one-time prepayment, your annual mortgage interest savings will grow over time -- because more and more of each payment is being applied to paying off the home loan.

How to Make Prepayments on Your Next Home

Suppose you've been making payments on a $250,000, 6%, 30-year mortgage for the past 3 years, but you only plan to stay in your home for another 5-years.

If you were able to free up an extra $200 per month to add to your current mortgage payment, 5 years from now you will be able to apply the following prepayments to the purchase of your next home:

- An additional $12,000 in equity.

- $2,000 in interest savings.

That's $14,000 you won't have to borrow and pay interest on!

But wait, if you have high-interest debts and apply the $200 per month to a rapid debt reduction plan, you may be able to double or triple the $14,000 prepayment on your next home.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.