Mortgage Payoff Calculator (Extra Payments)
An extra $100 a month can knock years off a mortgage. Enter your loan and any extra payments to see your new payoff date and exactly how much interest you keep.
Interest saved
| Year | Balance (original) | Balance (with extra) | Interest saved so far |
|---|
How to use the mortgage payoff calculator
- Enter your current principal balance from your latest mortgage statement, your interest rate, and the years left on the loan.
- Add any extra principal you plan to pay: a fixed amount every month, a once-a-year payment (a tax refund or bonus), or a one-time lump sum.
- Compare the payoff dates and total interest, and scan the year-by-year table to see how the gap grows.
Why extra payments are so powerful
Mortgage interest is charged on the balance you still owe, so every extra dollar of principal you pay today stops costing you interest for the rest of the loan. Early in a 30-year mortgage most of each payment is interest; an extra payment made in those years skips you ahead in the amortization schedule and the savings compound. That is why an extra $200 a month on a typical loan can save tens of thousands of dollars and cut several years off.
Before you prepay, check three things. First, make sure your lender applies extra money to principal (most have a checkbox or a separate field online). Second, confirm there is no prepayment penalty; they are rare on modern home loans but worth a look. Third, compare the guaranteed return of prepaying, which equals your mortgage rate, with your other options: paying off higher-rate debt or capturing an employer 401(k) match usually comes first, and an emergency fund should be in place before you lock cash into home equity.
A popular painless method is biweekly payments: paying half your monthly payment every two weeks adds up to 13 full payments a year instead of 12. You can model it here by entering one-twelfth of your payment as the monthly extra, or your full payment as the yearly extra.
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Frequently asked questions
Is it better to pay extra monthly or once a year?
Monthly extra payments save slightly more because the principal drops sooner, but the difference is small. Choose whichever you will actually stick with.
Does paying extra lower my monthly payment?
No. On a standard fixed-rate mortgage the required payment stays the same; the loan just ends sooner. To lower the payment you would need a recast (some lenders offer it after a large lump sum) or a refinance.
Are property taxes and insurance included?
No. This calculator models principal and interest only, because escrow amounts do not affect the payoff date.
Should I pay off my mortgage early or invest?
Prepaying earns a guaranteed return equal to your rate. Investing may earn more on average but with risk. Many people split the difference; the calculator shows what the prepayment side is worth.