Mortgage Payoff Calculator
See how much interest you save and how much sooner you are debt-free by paying extra toward your mortgage principal each month.
Result
How extra payments work
Any amount you pay above your regular payment goes straight to principal. Because interest is charged on the remaining balance, every extra dollar reduces the interest on all future payments. Ask your lender to apply extra payments to principal, not to next month’s payment.
A quick example
With $280,000 left at 6.5% and 27 years to go, the principal and interest payment is about $1,836. Adding $200 a month pays the loan off 5 years and 10 months sooner and saves about $79,680 in interest.
Before you prepay
Make sure you have an emergency fund, are capturing any 401(k) employer match and have paid off higher-interest debt such as credit cards. Most conventional mortgages have no prepayment penalty, but check your loan documents.
Related guide: Should You Pay Off Your Mortgage Early?
Frequently asked questions
Is one extra payment a year worth it?
Yes. Making one extra monthly payment per year, or paying half your payment every two weeks, can cut several years off a 30-year mortgage.
Should I pay off my mortgage or invest?
Paying extra gives a guaranteed return equal to your interest rate. Investing may earn more over time but carries risk. Many people do some of both.
Does this include taxes and insurance?
No. It covers principal and interest only. Escrowed property tax and insurance continue until you sell or stop using escrow.
Related tools
Results are estimates for informational purposes only and are not financial, tax, legal or medical advice.