Mortgage Payoff Calculator
See how extra payments pay off your mortgage early and how much interest you save.
Mortgage Details
Extra Payment Strategy
Additional Housing Costs
Refinance Analysis
Time to Pay Off
With $200 extra payment
Interest Saved
25.86% savings
Time Saved
80 months
Current Equity
20% of home value
Monthly Equity Gain
Principal payment
Interest: Paid vs Saved
Of the interest you'd owe on the standard schedule, this is how much the strategy saves.
Payment Breakdown
Payoff Comparison
Mortgage Tips
- • Extra payments go directly to principal
- • Even small extra payments can save thousands
- • Bi-weekly payments = 13 monthly payments per year
- • Consider opportunity cost vs other investments
- • Refinancing may be worth it if rates dropped significantly
How it works
A mortgage payoff calculator shows how extra payments shorten your loan and cut total interest. Because interest each month is charged on the remaining balance, every extra dollar of principal you pay early avoids interest on that dollar for all the remaining years — so small, consistent extra payments have an outsized effect.
Interest saved by extra principal
Monthly interest = Balance · (rate ÷ 12) Extra payment → 100% to principal → lower balance for every future month
- Balance
- remaining principal
- rate
- annual interest rate
- extra
- amount paid above the scheduled payment
Worked example
- $300,000 loan at 6.5%, 30-year term
- Scheduled payment ≈ $1,896/month
- Add $200/month extra
- The extra $200 goes straight to principal every month
Pays the loan off ~6 years early and saves roughly $90,000 in interest.
Good to know
- Bi-weekly payments (half the payment every two weeks) sneak in one extra full payment a year — a painless way to shave ~4 years off a 30-year loan.
- Confirm extra payments are applied to principal, not “paid ahead” on the next installment — call your servicer if unsure.
- Compare the guaranteed “return” (your mortgage rate) against investing the extra cash; a 6.5% rate is a solid risk-free hurdle, but a low 3% rate often loses to investing.
Related Calculators
Frequently Asked Questions
How much can extra payments save on my mortgage?
Every extra dollar goes straight to principal, eliminating all future interest on it. On a typical 30-year loan, even $100-200 extra per month commonly cuts several years off the term and saves tens of thousands in interest — the calculator shows your exact numbers.
How do bi-weekly payments pay a mortgage off faster?
Paying half your monthly payment every two weeks yields 26 half-payments — 13 full payments a year instead of 12. That one extra annual payment typically shortens a 30-year mortgage by roughly 4-6 years, depending on the rate.
Should I pay off my mortgage early or invest the money?
Compare your mortgage rate (after any tax benefit) to what you'd realistically earn investing. Paying down a 7% mortgage is a guaranteed 7% return; with a 3% mortgage, long-term investing has historically paid more. Liquidity and peace of mind are legitimate parts of the decision too.
Do extra payments lower my monthly payment?
No — they shorten the loan instead. Your required payment stays the same, but the balance falls faster, so the loan ends early. To lower the payment itself you'd need to refinance or request a recast, where the lender re-amortizes the reduced balance over the remaining term.
Do I need to tell my lender how to apply extra payments?
Yes. Specify that extra amounts are "principal-only"; otherwise servicers may hold them as a prepayment of next month's bill, which saves you nothing. Also confirm your loan has no prepayment penalty — rare on modern conforming loans, but worth checking.