A mortgage accelerator calculator is a program that promises to help homeowners pay down their mortgage faster than a traditional loan repayment term. There are also several different ways to accelerate a mortgage, and all of them will get the mortgage paid off faster than scheduled and save interest cost as well. You probably know that, but what you don’t know is how a mortgage accelerator calculator increases retirement savings. It’s true that a mortgage accelerator will allow you to own your home free and clear years sooner and reduce mortgage interest, but it can also increase your retirement savings. In fact, using a mortgage accelerator with an integrated retirement financial calculator can add hundreds of thousands of dollars to your retirement account. That’s not an overstatement, and you may be thinking that this sounds too good to be true. It’s not, and the reason is due to the compound interest formula.

 This homeowner saves $250/month for retirement. After 30 years, retirement savings grow to $372,000. 

Retirement savings grow slowly in early years, faster in later years.

This image shows how money grows by adding $250 per month over 30 years, the time it takes to pay off a 30 year mortgage, but it is important to note that it grows much faster as the account grows in later years. That’s because of the compounding of interest as the account balance increases. Retirement savings almost always begin with a small amount, and this is especially true for homeowners who have significant mortgage costs and cannot afford to save very much for their retirement. In the early years of retirement savings, the account earns very little interest. That is why the upward curve in the image is almost flat in the early years, when the account balance is low. Notice that, as the homeowner adds to the account each year and it grows, the bend in the curve increases.