Mortgage Payoff Calculator
Calculate how extra payments can help you pay off your mortgage faster and save thousands in interest. Enter your loan details and see immediate results showing your interest savings and time saved.
Calculate Your Mortgage Payoff
Calculate Your Mortgage Payoff
Original Loan Information
$10,000 - $10,000,000
1 - 50 years
0.01% - 30.00%
Extra Payment Configuration
$0 - $1,000,000 (enter 0 for no extra payments)
Total Interest Savings
$0.00
Add extra payments above to see your savings
Time Savings
0 mos
Add extra payments above to see time saved
Loan Comparison
Without Extra Payments
With Extra Payments
Loan Balance Over Time
- With Extra Payments
- Without Extra Payments
Amortization Schedule
Amortization Schedule
Detailed month-by-month payment breakdown showing interest, principal, and extra payments
Quick start
- Choose your input mode: Use "Original Loan" if you know your starting loan details, or "Current Balance" if you only know your current balance.
- Enter your loan information (amount, interest rate, and term).
- Add your extra payment amount and choose how often you'll pay (monthly, yearly, or one-time).
- View your instant results: See total interest savings, time saved, and payoff comparison.
- Experiment with different extra payment amounts to find the strategy that works best for your budget.
Your results — what they mean
Total Interest Savings: The total amount of interest you'll save by making extra payments. This is the difference between interest paid on your original loan schedule versus the accelerated payment schedule.
Time Savings: How much sooner you'll pay off your mortgage by making extra payments, shown in years and months.
Payoff Comparison Chart: Visual representation showing how your loan balance decreases over time with and without extra payments. The gap between the lines represents your savings.
Amortization Schedule: Month-by-month breakdown showing interest, principal, extra payments, and remaining balance for each payment. Expandable table shows the complete payment history.
How this calculator works (plain English)
The calculator uses the standard mortgage payment formula to determine your monthly payment based on your loan amount, interest rate, and term. For each month, it calculates how much of your payment goes to interest versus principal.
When you add extra payments, the calculator applies that additional amount directly to your loan principal. This reduces your balance faster, which means less interest accrues in future months. The compounding effect of lower interest charges is what creates the significant savings you see.
The calculator generates two complete amortization schedules: one showing your original payoff timeline, and another showing the accelerated timeline with extra payments. By comparing these scenarios, you can see exactly how much interest you save and how many months or years sooner you'll own your home outright.
Benefits of paying off your mortgage early
Interest Savings
Every extra dollar you pay goes directly to principal, reducing the amount you owe and the interest that accrues. Over the life of a 30-year mortgage, even small extra payments can save tens of thousands of dollars in interest.
Debt-Free Sooner
Paying off your mortgage early means owning your home outright years sooner. This financial freedom allows you to redirect your monthly payment toward other goals like retirement savings, college funds, or investments.
Build Equity Faster
Extra principal payments accelerate equity building in your home. More equity means better borrowing terms if you need a home equity loan, and a larger nest egg when you eventually sell.
Peace of Mind
Reducing debt provides psychological benefits and financial security. In economic downturns or job loss situations, a smaller mortgage payment (or no payment at all) provides crucial breathing room.
Extra payment strategies
Monthly Extra Payments
Adding a consistent amount to each monthly payment is the most common strategy. Even $100-$200 extra per month can shave years off your mortgage and save significant interest. This works well for budgeters who have predictable monthly income.
Yearly Lump Sum
Making one large extra payment per year (such as from a tax refund or annual bonus) provides substantial benefits without requiring monthly commitment. Many borrowers time this with their tax refund in spring.
One-Time Payment
A single large payment (from inheritance, sale of assets, or windfall) can dramatically accelerate your payoff. The earlier you make this payment, the greater the interest savings due to compounding.
Round Up Method
Round your payment up to the nearest hundred or add the equivalent of one extra payment per year (divide your monthly payment by 12 and add that to each payment). This simple approach is easy to maintain and creates measurable results.
FAQs
Should I pay off my mortgage early or invest the money?
This depends on your interest rate, investment returns, risk tolerance, and financial goals. If your mortgage rate is 4.5% and you can earn 8% in investments, mathematically investing may be better. However, the guaranteed "return" of interest savings and the psychological benefit of owning your home outright are valuable. Consult a financial advisor for personalized guidance.
Will extra payments hurt my credit score?
No, making extra mortgage payments will not hurt your credit. In fact, paying down debt can improve your credit utilization ratio and demonstrate responsible financial management.
Are there prepayment penalties?
Most modern mortgages do not have prepayment penalties, but some do. Check your loan documents or contact your lender to confirm. If you have a prepayment penalty, calculate whether the interest savings outweigh the penalty cost.
Should I specify that extra payments go to principal?
Yes! When making extra payments, explicitly instruct your lender to apply the additional amount to principal only, not to advance your next payment due date. This ensures maximum interest savings.
What if I can only afford extra payments sometimes?
Any extra payment helps, even if inconsistent. Pay extra when you can afford it—during months with extra income, when you receive bonuses, or when expenses are lower. There's no commitment required.
Does this calculator include taxes and insurance?
No. This calculator focuses on principal and interest only. Your actual monthly payment likely includes property taxes, homeowners insurance, and possibly PMI. The extra payments calculated here apply only to your loan principal.
Should I pay off my mortgage before retirement?
Many financial advisors recommend being mortgage-free by retirement to reduce fixed expenses and stress. However, this depends on your retirement savings, other debts, interest rate, and personal comfort level. Consider your complete financial picture.
Can I change my extra payment strategy later?
Absolutely. Extra payments are flexible—you can start, stop, increase, or decrease them anytime without penalty (assuming no prepayment penalty clause). Use this calculator to model different scenarios and find what works for your budget.
Assumptions
- Calculations are based on a fixed interest rate for the life of the loan.
- Monthly payment includes principal and interest only—does not include property taxes, homeowners insurance, PMI, or HOA fees.
- Extra payments are applied directly to principal, not advanced to future payment dates.
- All payments are made on time with no late fees or missed payments.
- The calculator uses standard mortgage amortization formulas with monthly compounding.
- Results assume no prepayment penalties—verify with your lender if unsure.
- All calculations are performed client-side—no data is sent to external servers.
- Currency values are rounded to 2 decimal places, time savings shown in years and months.
Glossary (all terms used)
- Amortization
- The process of paying off a loan through regular payments over time, with each payment covering interest and principal.
- APR (Annual Percentage Rate)
- The yearly interest rate charged on a loan, expressed as a percentage. Determines how much interest accrues each year.
- Extra Payment
- An additional amount paid beyond your required monthly payment, applied directly to principal to reduce loan balance faster.
- Interest
- The cost of borrowing money, calculated as a percentage of your remaining loan balance each month.
- Interest Savings
- The total reduction in interest paid over the life of the loan by making extra payments.
- Loan Balance
- The amount you still owe on your mortgage at any given point in time.
- Loan Term
- The length of time you have to repay the loan, typically expressed in years (e.g., 15-year, 30-year mortgage).
- Monthly Payment
- The required amount you must pay each month, consisting of principal and interest (P&I).
- Payoff Date
- The date when your mortgage will be completely paid off and you'll own your home outright.
- PMI (Private Mortgage Insurance)
- Insurance required by lenders when down payment is less than 20%, protecting the lender if you default. Not included in this calculator.
- Prepayment Penalty
- A fee some lenders charge if you pay off your mortgage early. Check your loan documents to see if this applies to you.
- Principal
- The original loan amount borrowed, or the remaining amount you owe excluding interest.
- Principal Payment
- The portion of your monthly payment that reduces your loan balance.
- Time Savings
- How much sooner you'll pay off your mortgage by making extra payments, expressed in years and months.
Disclaimer
This calculator provides estimates for informational purposes only. Actual mortgage terms, interest rates, and payments may vary based on your lender's specific requirements. Results do not include taxes, insurance, HOA fees, or other costs. Always verify calculations with your mortgage lender. This calculator does not constitute financial advice. Consult with qualified financial professionals before making mortgage payment decisions.
