Mortgage Payoff Calculator
See how extra payments can accelerate your mortgage payoff.
Result
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The Mortgage Payoff Calculator shows how extra payments accelerate your payoff timeline and reduce total interest paid. See the dramatic impact of even small additional contributions, and plan a strategy to become debt-free faster.
Examples
Extra $200/month
On a $250,000 mortgage at 6.5%, adding $200/month to your payment can save over $60,000 in interest and shave 6+ years off a 30-year loan.
Annual Bonus Payment
Applying a $5,000 annual bonus to your mortgage each year can significantly reduce the payoff timeline and total interest paid.
Frequently Asked Questions
How do extra payments save money?
Extra payments reduce the principal balance, so less interest accrues each month. This snowball effect shortens the loan and cuts total interest paid.
Should I pay extra or invest?
Compare your mortgage rate to expected investment returns after tax. If your mortgage rate is higher, extra payments offer a guaranteed return.
Are there prepayment penalties?
Most conventional mortgages do not have prepayment penalties, but always check your loan agreement or contact your lender.
Result
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Quick Tips
- •Even small extra payments each month can save thousands in interest.
- •Bi-weekly payments (26 half-payments per year) effectively add one extra payment per year.
- •Check your lender for prepayment penalties before making extra payments.