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
Expert strategies to accelerate your payoff
Even $50-100 extra per month can save thousands in interest over the life of your loan.
Use tax refunds, bonuses, or gifts to make lump sum payments toward your principal.
One extra payment per year can shave years off your mortgage term.
Pay half your mortgage every two weeks instead of once monthly for faster payoff.
If rates drop, refinancing to a shorter term can save you money and time.
📚 Financial Terms Glossary
Understanding key financial terms helps you make better decisions
APR (Annual Percentage Rate)
The yearly cost of your loan including interest and fees. APR represents the true cost of borrowing money and allows you to compare different loan offers.
Principal
The original amount of money borrowed, not including interest. When you make extra payments, they go directly toward reducing the principal, which saves you interest.
Interest
The cost of borrowing money, calculated as a percentage of the principal. Interest is charged on the remaining loan balance, so paying down principal faster reduces total interest paid.
Amortization
The process of paying off a loan through regular payments over time. An amortization schedule shows how each payment is split between principal and interest.
Loan Term
The length of time you have to repay the loan. Common mortgage terms are 15 or 30 years. Making extra payments can significantly reduce your loan term.
Extra Payment
Any payment beyond your required monthly amount. Extra payments are applied directly to the principal, reducing your total interest and shortening your loan term.
Payoff Date
The date when your loan will be completely paid off based on your payment schedule. Making extra payments moves your payoff date earlier.
Remaining Balance
The amount of principal you still owe on your loan. This decreases with each payment as principal is paid down.
Frequently Asked Questions
Everything you need to know about mortgage payoff
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.
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.
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.
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.
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.
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.