Enter your current mortgage details and any additional payment amounts into the calculator to expedite the process of paying off your mortgage.

Mortgage Accelerator Calculator

Enter any 3 values to calculate the missing variable (Principal, Annual Interest Rate, Loan Term (Years), Monthly Payment)

Mortgage Accelerator Formula

The following equation is used to calculate the Mortgage Accelerator Payment per month.

MA = MP + AP
  • Where MA is the Mortgage Accelerator Payment ($/month)
  • MP is the standard mortgage payment ($/month)
  • AP is the additional payment ($/month)

To calculate the mortgage accelerator payment, add the additional payment to the standard mortgage payment. This extra amount reduces your principal balance faster, saving money on interest over time.

What is a Mortgage Accelerator?

Definition:

A mortgage accelerator is a strategy designed to help homeowners pay off their mortgage faster by making additional or more frequent payments. This approach typically reduces the total interest paid over the life of the loan and can shorten the loan term.

How to Calculate Mortgage Accelerator?

Example Problem:

The following example outlines the steps and information needed to calculate the Mortgage Accelerator Payment.

First, determine the standard monthly mortgage payment. In this example, the payment is $1,200 per month.

Next, determine the additional amount you plan to pay each month. In this case, you decide to pay an extra $300.

Finally, calculate the Mortgage Accelerator Payment using the formula above:

MA = MP + AP

MA = $1,200 + $300

MA = $1,500/month

FAQ

What are some common methods to accelerate a mortgage?

Common methods include making a lump-sum payment when possible, setting up bi-weekly payments instead of monthly, refinancing to a shorter-term loan, or consistently adding an extra amount to your monthly payment to pay down the principal faster.

Does paying more frequently really save money on interest?

Yes. By paying more frequently or making additional payments, you reduce the principal balance faster. A lower principal balance over time translates to fewer interest charges overall, which can save you a substantial amount of money.

Is a mortgage accelerator strategy right for everyone?

While accelerating your mortgage can save you money on interest, it may not be ideal if you need to focus on other financial goals, such as building an emergency fund or paying off high-interest debt. It’s important to assess your overall financial situation before implementing a mortgage acceleration plan.