Mortgage Payoff Calculator

See how much sooner you'll be mortgage-free, and how much interest you'll save, by paying extra.

Resultupdates as you type
Interest you save—
Paid off sooner by—
New payoff date—
Original payoff date—
Monthly payment (P&I)—

Without vs. with extra payments

WithoutWith extra

How to use the mortgage payoff calculator

  1. Enter your current loan balance from your latest mortgage statement, your interest rate, and the years left on the loan.
  2. Add any extra monthly payment, an extra payment once a year (a tax refund or bonus, for example), and any one-time lump sum you can pay now.

The calculator compares your loan with and without the extra payments, showing interest saved, time saved, and your new mortgage-free date.

Why extra payments save so much

Mortgage interest is charged on the remaining balance each month. Every extra dollar of principal you pay today stops being charged interest for the rest of the loan, often 20+ years. Early in a mortgage most of each payment is interest, so extra payments made in the first years have the largest effect.

Monthly interest = Remaining balance × (Annual rate ÷ 12)

Example

A $300,000 balance at 6.5% with 30 years left has a principal-and-interest payment of about $1,896. Adding just $200 a month:

  • Pays the loan off 6 years and 11 months sooner.
  • Saves about $103,000 in interest, from roughly $382,600 down to $279,200.

Use the calculator to see your own numbers. Even $50–$100 extra a month makes a real difference.

Popular payoff strategies

  • Round up your payment: paying $2,000 instead of $1,896 is easy to budget and adds up.
  • Biweekly payments: paying half your payment every two weeks results in 13 full payments a year instead of 12. Enter one monthly payment in "Extra once a year" to model it.
  • Windfalls: put part of tax refunds, bonuses or gifts toward principal as a lump sum.
  • Refinance plus keep paying: if you refinance to a lower rate, keep paying your old amount to finish years earlier.

Estimates only. Your lender's figures may differ slightly due to payment dates, escrow and rounding.

Frequently asked questions

Is it worth paying extra on my mortgage?
Paying extra guarantees a return equal to your mortgage rate, because every extra dollar avoids future interest. It's usually worth it once you have an emergency fund, no high-interest debt, and you're getting any employer retirement match. If your mortgage rate is low, investing the money may earn more over time, but with more risk.
How do I make sure extra payments go toward principal?
Tell your lender the extra amount is for principal only, often with a checkbox or note on the payment. Otherwise some lenders hold it as an early payment of next month's bill, which doesn't reduce interest.
What does one extra payment a year do?
Making one extra full payment each year — the same effect as paying biweekly — typically cuts 4 to 6 years off a 30-year mortgage and saves tens of thousands in interest. Enter your monthly payment in the "Extra once a year" box to see your exact result.
Does paying extra lower my monthly payment?
No. Your required payment stays the same; you just finish sooner. Some lenders offer a "recast" after a large lump sum, which re-calculates a lower payment over the remaining term for a small fee.
Are there prepayment penalties?
Most US mortgages today have no prepayment penalty, but some loans do, especially in the first few years. Check your loan documents or ask your lender before making large extra payments.