Mortgage Payoff Calculator
Calculate how much you can save by making extra payments
Loan Details
Quick Scenarios:
Enter your loan details to see how much you can save
How This Calculator Works
This mortgage payoff calculator uses your loan balance, interest rate, and payment information to calculate how much you can save by making extra payments toward your principal.
When you make extra payments, more of your money goes directly to reducing the principal balance. This means you'll pay less interest over the life of the loan and pay off your mortgage faster.
The calculator generates a complete amortization schedule showing how each payment is split between principal and interest, giving you a clear picture of your payoff journey.
Tips for Paying Off Your Mortgage Early
- Start small: Even $50-100 extra per month can save thousands in interest
- Apply windfalls: Use tax refunds, bonuses, or gifts to make lump sum payments
- Make 13 payments: One extra payment per year can shave years off your mortgage
- Bi-weekly payments: Pay half your mortgage every two weeks instead of once monthly
- Consider refinancing: If rates drop, refinancing to a shorter term can help
Frequently Asked Questions
How much can I save by making extra mortgage payments?
The amount you save depends on your loan balance, interest rate, and how much extra you pay. Even small extra payments of $50-100 per month can save thousands of dollars in interest over the life of your loan. Use our calculator above to see your specific savings.
Will extra payments shorten my mortgage term?
Yes! Extra payments go directly toward your principal balance, which reduces the total time needed to pay off your mortgage. Even one extra payment per year can shave years off a 30-year mortgage.
Is it better to make one lump sum payment or monthly extra payments?
Both strategies save money, but the most important factor is consistency. Monthly extra payments are often easier to budget for and can be just as effective as lump sum payments. The key is to start as early as possible in your loan term when interest makes up a larger portion of your payment.
Should I pay off my mortgage early or invest the money?
This depends on your personal financial situation. If your mortgage interest rate is higher than your expected investment returns, paying off your mortgage may be the better choice. Consider factors like your risk tolerance, other debts, emergency savings, and retirement goals. Consult with a financial advisor for personalized guidance.
Are there any penalties for paying off my mortgage early?
Most modern mortgages in the United States do not have prepayment penalties, but some loans do. Check your mortgage documents or contact your lender to confirm. If your loan has a prepayment penalty, factor this into your calculations to determine if extra payments still make financial sense.
How do I make extra mortgage payments?
Contact your lender to ensure extra payments are applied to your principal balance, not future interest. You can typically make extra payments by including additional funds with your regular monthly payment and specifying that the extra amount should go toward the principal. Some lenders also allow you to set up automatic extra payments.