Mortgage Payoff Calculator
Find out what adding a little extra to your mortgage payment really does. Enter your current balance, interest rate, term and the extra you can pay each month to see how many months you cut off the loan and how much interest you keep.
How to use the mortgage payoff calculator
- Enter your loan balance, annual interest rate and the original term in years.
- Enter the extra amount you can add to each monthly payment.
- See how many months sooner the loan is paid off and how much interest you save.
Examples
300k at 6% over 30 years, plus $200 a month
Balance 300,000, rate 6%, term 30 years, extra 200 per month
Paid off years early with tens of thousands less interest paid
No extra payment (baseline)
Balance 300,000, rate 6%, term 30 years, extra 0
360 months, no time or interest saved (matches the standard schedule)
Frequently asked questions
How do extra payments save money?
Every extra dollar goes straight to principal, so the balance shrinks faster. A smaller balance means less interest accrues each month, which shortens the loan and cuts the total interest you pay over its life.
Is paying extra each month better than biweekly payments?
They are close. Biweekly payments add up to roughly one extra monthly payment per year. Adding a fixed extra amount each month is simpler to model and lets you choose exactly how much faster you want to pay the loan down.
When is it better not to prepay the mortgage?
If you have higher-interest debt, no emergency fund, or unused tax-advantaged retirement space, those usually come first. Also check that your loan has no prepayment penalty before sending extra principal.
What is the difference between principal and interest in a payment?
Interest is the lender's charge on the outstanding balance for that month. Principal is the part of the payment that actually reduces what you owe. Early in a loan most of the payment is interest, which is why extra principal early has the biggest effect.
Does this include taxes, insurance and PMI?
No. The calculator covers loan principal and interest only. Extra principal payments do not change escrow items like property taxes or homeowners insurance, though clearing the loan sooner can end PMI earlier.
Are the results financial advice?
No. The figures are estimates to help you compare scenarios. Confirm your exact balance, rate and any prepayment terms with your lender before changing your payments.
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