Mortgage Payoff Calculator
Enter your current balance, rate, and remaining term, then add an extra principal payment to see time and interest saved.
Loan details
Scheduled monthly payment (P&I):
Payoff without extra:
Payoff with extra:
Time saved:
Total interest (baseline): · With extra: · Interest saved:
Why extra payments save so much interest
Every dollar of extra payment goes straight to principal, which reduces the balance that next month's interest is calculated on. Over years of compounding, even a modest extra payment can eliminate a surprising number of future interest charges and shave years off the loan — this calculator runs a full month-by-month simulation with and without your extra payment to show the difference precisely.
Frequently asked questions
Is it better to pay extra toward the mortgage or invest the money instead? It depends on your mortgage rate versus your expected investment return, and your tolerance for risk — paying down debt is a guaranteed "return" equal to your interest rate, while investing carries market risk but historically can outperform low mortgage rates over the long run.
Do I need to tell my lender I'm making an extra payment? Most lenders require you to specify that the extra amount should apply to principal, not toward future scheduled payments — check your loan servicer's process to make sure it's applied correctly.
Are there prepayment penalties? Some loans (less common today, especially for conforming mortgages) charge a fee for paying off early — check your loan documents before committing to an aggressive payoff plan.