Mortgage Payment Calculator 2026 — With Monthly Extra Principal Slabs

Adding extra principal payments directly reduces your outstanding loan balance. This bypasses the compounding interest schedule, shortening your overall loan term and saving thousands in interest.

In early mortgage years, the majority of your monthly payment goes toward interest charges. Over time, the allocation shifts, and a larger portion goes toward reducing the principal balance.

A 15-year mortgage has higher monthly payments but significantly lower interest costs and rates. A 30-year mortgage offers lower payments but accumulates much higher interest over the life of the loan.

PMI is required if your down payment is less than 20% of the home value. It can be cancelled once your outstanding mortgage balance drops to 80% of the original purchase price.

Refinancing saves money if you secure an interest rate at least 1% lower than your current rate, and if you plan to stay in the home longer than the breakeven period.