How do extra principal payments affect a mortgage?
Making additional payments toward your loan principal shortens your overall payoff timeline and drastically reduces total interest expense.
Mortgage Calculator
Free mortgage calculator [2026]: estimate monthly payments, total interest, and loan amortization schedule.
On a standard 30-year fixed mortgage at 6.5% interest rate, the monthly payment is approximately $6.32 per $1,000 borrowed (or ₪6,321/month per ₪1,000,000 borrowed). Total interest over 30 years typically exceeds 127% of the original principal amount.
Mortgage Payment & Home Financing Amortization Guide
A mortgage divides monthly payments into principal reduction, interest, property taxes, and homeowners insurance.
- M = P × [ r(1+r)^n ÷ ((1+r)^n - 1) ]
- P = Loan Principal Amount
- r = Monthly Interest Rate (Annual Rate ÷ 12)
- n = Total Amortization Payments (Years × 12)
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