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Mortgage Payoff Calculator

See how extra payments crush your mortgage. Enter balance, rate, years left and a monthly extra to reveal years saved and interest saved — free.

About this tool

Every extra dollar you send your lender goes straight at the loan’s principal — and principal you kill today never accrues interest again. That compounding-in-reverse is why even a modest extra payment, like $200 a month, can erase nearly a decade from a 30-year mortgage and save tens of thousands in interest.

This calculator simulates your exact loan month by month, with and without the extra payment, and shows the new payoff date, the time saved and the interest saved.

How to use

Enter your remaining balance, annual interest rate, years left on the loan, and how much extra you can pay each month. Press Calculate Payoff to see your new payoff timeline, years shaved off, interest saved, and the new total monthly payment.

Try a few extra amounts — $100, $200, $500 — to find the sweet spot between speed and what your budget can sustain.

The math behind it

Your regular payment comes from the standard amortization formula. Then the calculator walks the loan forward month by month: each month’s interest is charged on the remaining balance, your payment (plus extra) covers the interest, and the rest destroys principal. Fewer principal dollars left means less interest next month — the snowball that creates the savings.

Example: $200,000 at 6% with 30 years left and $200 extra monthly pays off in about 21 years instead of 30, saving roughly 9 years and about $79,000 in interest.

Frequently asked questions

Do extra mortgage payments go toward the principal?
Yes — once the month’s interest is covered, every extra dollar reduces the principal directly. And because future interest is charged on the smaller balance, one extra payment keeps saving you money every single month after it. Just confirm with your lender that extra payments are applied to principal, not held as future payments.
Is it better to pay extra monthly or make one lump sum a year?
Mathematically they are close cousins: $200 extra monthly and one $2,400 yearly payment save similar amounts. Monthly wins slightly because principal drops sooner, and most people find the monthly habit easier to keep than saving up a lump sum.
How much can I save by paying $200 extra a month?
On a $200,000 loan at 6% with 30 years remaining, $200 extra monthly cuts the payoff to about 21 years and saves roughly $79,000 in interest. Run your own numbers above — bigger balances and higher rates make the savings even larger.
Will my lender charge a prepayment penalty?
Most modern mortgages have no prepayment penalty, but some loans — especially older or non-standard ones — charge a fee for paying off early, usually only in the first few years. Check your loan agreement or ask your servicer before sending large extra payments.
Should I pay off my mortgage early or invest the money instead?
Compare your mortgage rate to what you expect investments to earn: paying down a 7% mortgage is a guaranteed 7% return, while markets only promise averages with risk. Many people split the difference — extra payments for peace of mind plus investing for growth.

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