Mortgages
Mortgage Payoff Calculator
Every extra dollar toward principal shortens your mortgage and cuts interest. Enter your balance, rate, term, and an extra monthly amount to see your new payoff date and the interest you'd save over the life of the loan.
Interest saved
$103,447
By adding the extra payment every month.
- Paid off sooner
- 6 years 11 months
- New payoff time
- 23 years 1 month
- New monthly payment
- $2,096.20
- Total interest (with extra)
- $279,185
Base payment plus your extra.
Versus $382,632 with no extra.
How this calculator works
The standard payment amortizes the loan over its term. Adding your extra to that payment, we solve for the new (shorter) payoff time and total interest at the same rate, then compare. Interest saved is the difference between the two interest totals.
Assumes the extra is paid every month and applied to principal, with a fixed rate. It doesn't account for taxes, PMI removal, or the opportunity cost of investing the money instead — see the FAQ on paying down versus investing.
Try an example
Frequently asked questions
How much does paying extra on my mortgage save?
A lot, because extra payments go entirely to principal and stop all the future interest that principal would have accrued. On a $300,000 loan at 6.5%, even $200 extra a month can cut years off the term and save tens of thousands in interest. The calculator shows your exact numbers.
Is it better to pay off my mortgage early or invest?
It depends on your mortgage rate versus expected investment returns, and your taxes and risk tolerance. Paying down a 6.5% mortgage is a guaranteed 6.5% return; investing might beat it but isn't guaranteed. Many people do both — capture any employer 401(k) match first, then split extra cash between the two.
Should I make extra payments or refinance?
They solve different problems. Refinancing lowers your rate (worth it if rates dropped and you'll stay past the break-even). Extra payments shorten the term at your current rate without closing costs. You can do both — refinance to a lower rate, then keep paying extra to finish even faster.
How do I make sure extra payments go to principal?
Tell your servicer to apply the extra amount to principal, not to prepay next month's payment or escrow. Many online payment portals have a separate 'additional principal' field. Confirm on your next statement that the extra reduced the balance, since misapplied payments erase the benefit.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.