Mortgage Payoff Calculator

See how extra monthly payments can save you years of payments and thousands in interest

$0
Total Interest Saved
Standard Payoff
With Extra Payments

About the Mortgage Payoff Calculator

This mortgage payoff calculator shows how adding extra payments to your monthly mortgage can save years of payments and thousands of dollars in interest. See a side-by-side comparison of your standard and accelerated payoff dates. Even small extra payments can make a dramatic difference over time. This calculator helps you create a strategy to become mortgage-free sooner, showing the exact payoff date and total interest savings with your chosen extra payment amount.

How to Use This Calculator

  1. Enter your current mortgage balance, interest rate, and remaining term.
  2. Input the extra amount you can add to each monthly payment.
  3. Click Calculate to see your interest savings and new payoff date.

The Formula

The calculator computes the standard amortization schedule and then simulates accelerated payments to determine interest saved and months reduced.

Interest Saved = Std Total Interest - Accelerated Total Interest

Frequently Asked Questions

How much can I save by paying extra?

Even small extra payments of $50-$200 per month can save thousands in interest and shave years off your mortgage term, depending on your rate and balance.

Is mortgage prepayment always a good idea?

Paying extra on your mortgage saves interest, but consider other priorities like emergency savings, higher-interest debt, and retirement contributions first.

How much should I pay extra each month?

Even $50 to $200 per month can make a significant difference. The calculator lets you experiment with different amounts to find a balance between accelerating your payoff and maintaining financial flexibility.

Is it better to invest or pay off my mortgage early?

This depends on your mortgage rate versus expected investment returns. If your mortgage rate is below 4-5%, investing may yield higher returns. Paying off a higher-rate mortgage provides a guaranteed return.

Will paying extra affect my tax deductions?

Mortgage interest is tax-deductible for many homeowners. As you pay off your mortgage faster, you will have less interest to deduct. Consult a tax professional for your specific situation.

Can I make lump-sum payments instead of monthly extras?

Yes, lump-sum payments such as tax refunds or bonuses can be applied to your principal. Many mortgages allow annual lump-sum payments of up to 20% of the balance without penalty.

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