Mortgage Payoff Calculator
See exactly how much faster — and how much cheaper — your mortgage can be paid off by adding extra payments each month.
Recommended next steps
How it works
- 1Enter your current loan balance
Not the original loan — the amount still owed today.
- 2Add your interest rate and remaining term
Find these on your most recent mortgage statement.
- 3Try an extra monthly payment
Even $100–$200 extra can knock years off your mortgage.
Paying off your mortgage early is one of the most powerful guaranteed-return moves available. Every extra dollar of principal payment saves you years of compounding interest at your mortgage rate.
Here's why it works so well: on a typical 30-year mortgage, roughly 60% of your early payments go to interest. Extra principal payments skip that interest entirely. $200 extra per month on a $300,000, 30-year mortgage at 6.5% saves around $90,000 in interest and pays the loan off ~7 years sooner.
Before accelerating your mortgage, make sure you have an emergency fund (3–6 months of expenses), are taking full advantage of any employer 401(k) match, and have paid off higher-interest debt like credit cards. Extra mortgage payments are great, but they're illiquid — you can't easily get that money back.
Other ways to pay off a mortgage faster include refinancing to a shorter term (15-year), making bi-weekly instead of monthly payments, and applying tax refunds or bonuses directly to principal.
Example scenarios
Pays off ~7 years sooner. Saves ~$90,000 in interest.
Pays off ~12 years sooner. Saves ~$140,000+ in interest.
Pays off ~6 years sooner. Saves ~$120,000+ in interest.
Pays off ~5 years sooner. Saves ~$40,000 in interest.
What affects your result?
The higher your rate, the more each extra principal dollar saves. Borrowers above 7% see outsized benefits from acceleration.
Extra payments early in the loan have the biggest impact because they remove decades of compounding interest.
Even $100/month moves the needle. Returns are roughly linear — doubling the extra payment roughly doubles the years saved.
If you carry 20%+ credit card debt or a 9% auto loan, those should be cleared before accelerating a 6% mortgage.
Common mistakes to avoid
- Sending extra payments without writing 'apply to principal' — some servicers credit them to next month's payment instead, which doesn't save interest.
- Accelerating the mortgage before topping up an emergency fund — extra payments are essentially illiquid until you sell or refinance.
- Ignoring a 401(k) employer match to add to the mortgage — the match is a guaranteed 50–100% return and almost always wins.
- Refinancing into a fresh 30-year term to 'lower the payment' — total interest often goes up even at a lower rate.
- Forgetting that the math changes if rates drop later — a future refinance can outperform years of small extras.
Common questions
How does paying extra on my mortgage help?
Every extra dollar reduces principal, which cuts the interest accrued every following month. Even $100/month extra can shave years off a 30-year mortgage and save tens of thousands in interest.
Should I pay off my mortgage early or invest?
If your mortgage rate is below long-term market returns (~7%) and you have other goals, investing may win mathematically. But guaranteed debt-free returns and the peace of mind of owning your home are powerful — there's no wrong answer.
Are there penalties for paying off a mortgage early?
Most US mortgages have no prepayment penalty, but check your loan documents. Some loans charge a fee if paid off within the first 3–5 years.
Is bi-weekly payment the same as extra payment?
Bi-weekly produces one extra full payment per year (26 half-payments = 13 monthly). It's equivalent to adding ~1/12 of your monthly payment each month.