Mortgage Payoff Calculator — See How Extra Payments Help

Remaining Balance ($)Enter a valid balance.

Interest Rate (%)Enter a valid rate.

Remaining Term (years)Enter a valid term.

Extra Monthly Payment ($)Enter a valid amount.

New Payoff Time

—

Time Saved

—

Interest Saved

—

How to Use This Tool

Enter your remaining balance, rate, and remaining term.
Enter the extra amount you plan to pay each month beyond your normal payment.
Click Calculate to see your new payoff time and interest savings.

How Extra Payments Accelerate Payoff

Any extra amount you pay beyond your required monthly payment goes entirely toward reducing your principal balance, which in turn reduces the interest that accrues in all future months — creating a compounding acceleration effect.

Why Even Small Extra Payments Add Up

Because mortgage interest is calculated on your outstanding balance, consistently paying even a modest extra amount each month can shave years off your loan and save substantial interest, since each extra dollar of principal reduction compounds in your favor for every remaining month of the loan.

Alternatives to Consider

Biweekly payments: Paying half your monthly payment every two weeks results in 26 half-payments per year (13 full payments instead of 12), effectively making one extra payment annually
Annual lump sum: Applying a tax refund or bonus as a one-time extra principal payment each year

Before Prioritizing Extra Payments

Consider whether you have higher-interest debt to pay off first, an adequate emergency fund, and whether you're maximizing tax-advantaged retirement contributions — extra mortgage payments are a good use of money, but not always the mathematically optimal one compared to other financial priorities.

Frequently Asked Questions

Should I pay extra on my mortgage or invest the money instead?

This depends on your mortgage rate versus expected investment returns, your risk tolerance, and other financial priorities — there's no universally correct answer, and many people do a mix of both.

Does my lender need to know I'm making extra payments?

Most lenders allow extra principal payments, but you should specifically instruct that the extra amount be applied to principal (not held for the next payment) — check with your loan servicer for the correct process.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.