Mortgage Payoff Calculator
See how extra monthly or one-time payments can reduce your mortgage term and total interest.
Current mortgage
$
%
Extra payments
$
$
Payoff impact
Interest saved
$118,810.16
Original payoff
Jul 2056
New payoff
Oct 2048
Months saved
93
Original interest
$382,636.71
How to use
- Enter your current loan balance, interest rate and remaining term.
- Add an extra monthly payment amount.
- Optionally add a one-time extra payment and the month you plan to make it.
- Review your new payoff date, months saved and total interest saved.
Formula
The calculator uses your existing amortizing monthly payment and applies extra payments directly to principal.
Each month: interest = remaining balance × monthly rate; principal paid = total payment + extra − interest; new balance = old balance − principal paid.
The loan ends when the balance reaches zero, which can be earlier than the original term.
Example
For a $300,000 loan at 6.5% over 30 years, paying an extra $200 every month:
You could save around $83,000 in interest and pay off the loan about 7 years earlier.
Frequently asked questions
Will my lender allow extra payments?
Most U.S. lenders allow extra principal payments, but some charge prepayment penalties. Check your loan agreement first.
Should I make extra payments or invest?
Compare your mortgage interest rate to your expected investment return. If your mortgage rate is higher than your expected after-tax investment return, paying down the loan may make sense.
Do extra payments reduce my monthly bill?
No. Extra principal payments reduce your balance and payoff date, but your required monthly payment usually stays the same unless you recast the loan.
What is a mortgage recast?
A recast re-amortizes your loan after a large principal payment, lowering your monthly payment while keeping the same term and rate. Not all lenders offer it.
How much can extra payments save on a mortgage?
Even $100/month extra can shave years off a 30-year mortgage and save tens of thousands in interest. Enter your numbers to see the impact.
Should I pay off my mortgage early?
It depends on your interest rate vs investment returns and other financial goals. This calculator shows the interest savings from early payoff.