Mortgage Payoff Calculator

See how extra monthly payments shorten your mortgage and save interest.

How extra payments shorten a mortgage

Your regular payment is set by the balance, rate and years left. Every extra dollar goes straight to the principal, so the balance falls faster and you pay less interest in all the months that follow. The calculator repeats the monthly calculation with and without the extra payment and compares the results.

Worked example

A $280,000 balance at 6.5% with 30 years left has a payment of $1,769.79 and about $357,125 in total interest. With extra payments each month:

• +$200: paid off in 22 years 9 months, saving 7 years 3 months and about $101,283 in interest.
• +$500: paid off in 17 years 1 month, saving about $173,584.
• +$1,000: paid off in 12 years 3 months, saving about $230,461.

Frequently asked questions

Is it better to pay extra every month or in one lump sum?

Both reduce the principal. Earlier extra payments save more interest because they cut the balance for longer. A monthly extra amount is easier to plan around.

Will my lender charge a penalty for paying early?

Some loans have prepayment penalties. Check your loan terms, and make sure extra payments are applied to the principal.

Does this include taxes and insurance?

No. It covers principal and interest only. Property tax, homeowners insurance and mortgage insurance are separate.

Should I pay off my mortgage early?

It depends on your interest rate, other debts, savings and goals. This calculator shows the effect so you can decide, and a financial professional can help you weigh the options.

Results are estimates for general information, not financial advice.