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.

Tested against worked examplesHow we verify

Loan balance

Interest rate

Remaining term

Extra payment per month

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

Interest (with extra)$279,18573%

Interest saved$103,44727%

Compare scenariosTry three values of one input

Vary

Mortgage Payoff Calculator results for three values of Loan balance
Loan balance
Interest saved	$100,119	$103,447+$3,328	$106,353+$6,235
Paid off sooner	7 years 6 months	6 years 11 months−7 months	6 years 6 months−1 year
New payoff time	22 years 6 months	23 years 1 month+7 months	23 years 6 months+1 year
New monthly payment	$1,906.58	$2,096.20+$189.62	$2,285.82+$379.24
Total interest (with extra)	$244,250	$279,185+$34,935	$314,542+$70,292

Every other input stays at the value you set above — currently $300,000 for loan balance. Differences are measured against the first column.

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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.

What this assumes

Extra payments are applied to principal on schedule and immediately. Servicers may apply unmarked extra payments to the next instalment instead, which produces no saving.
The rate is fixed and no refinancing occurs during the payoff.
The comparison ignores what the same money might earn invested — that trade-off is a separate calculator.

What changes this number

Size of the extra payment: The dominant input. Even a small consistent amount removes years, because it compounds against the interest.
When you start: Early extra payments avoid far more interest than identical late ones.
Rate: The higher the rate, the more each extra dollar is worth — which is also why low-rate mortgages are the weakest case for prepaying.

A worked example

Take the $300k, 6.5%, +$200/mo scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Loan balance: $300,000
Interest rate: 6.5%
Remaining term: 30 years
Extra payment per month: $200

What it returns

Interest saved: $103,447
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

Try an example

$300k, 6.5%, +$200/mo Aggressive: +$500/mo Small but steady: +$100/mo

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.