Mortgage Payoff Calculator
See how extra payments can shorten your mortgage term and save thousands in interest.
Current Mortgage
Extra Payments
Time Saved
5y 0m
Interest Saved
$66,894
New Payoff
20y 0m
Comparison
Disclaimer
Check your loan for prepayment penalties. Some mortgages limit extra payments. Contact your lender for details.
How Extra Payments Save You Money
Every extra dollar you pay goes directly toward principal, reducing the balance that future interest is calculated on. On a $300,000 mortgage at 7%, adding just $200/month saves over $80,000 in interest and pays off the loan 7 years early.
Payoff Strategies Compared
| Strategy | How It Works | Best For |
|---|---|---|
| Extra Monthly | Add a fixed amount each month | Steady extra income |
| Biweekly Payments | Pay half the payment every 2 weeks (26 half-payments = 13 full) | Salaried workers |
| Annual Lump Sum | Use bonus or tax refund once/year | Variable income |
| Recast | Lump sum payment + lower required payment | Large windfalls |
Should You Pay Off Your Mortgage Early?
It depends on your interest rate and alternative investments. If your mortgage rate is 3% and you can earn 7-10% in the stock market, investing the extra money may build more wealth. But if your rate is 6-7%+, paying down the mortgage offers a guaranteed "return" that's hard to beat risk-free.
CFPB — Extra Mortgage Payments→Frequently Asked Questions
Is there a prepayment penalty?
Most conventional and government-backed (FHA, VA) loans do not have prepayment penalties. Some jumbo or subprime loans might. Check your loan documents or ask your servicer.
Where should the extra payment be applied?
Always specify that extra payments go to principal, not toward future payments. Some servicers will apply extra money to next month's payment (including interest) unless you request principal-only application.
Try our Refinance Calculator to compare payoff vs refinancing, or check the HELOC Calculator.