Mortgage Payoff Calculator

Every extra dollar goes straight to principal, so it removes all the future interest that principal would have generated. Because mortgages are front-loaded with interest, even a modest extra amount can cut years off the loan and save tens of thousands in interest.

On a $300,000 balance at 6.5% with 30 years left, adding $200/month pays the loan off roughly 6 years early and saves well over $80,000 in interest. Enter your own numbers above to see your exact figures.

Compare your mortgage rate to your expected after-tax investment return. If the mortgage rate is higher, extra payments give a guaranteed, risk-free return equal to the rate. If investments reliably beat it, investing may win — but paying down debt is certain.

Biweekly payments (half the monthly amount every two weeks) result in 13 monthly payments per year instead of 12 — one extra payment annually. That single extra payment produces most of the savings this calculator shows for a monthly extra amount.

No — extra principal shortens the loan term, not the required monthly payment. Your minimum payment stays the same; you simply finish sooner. To lower the monthly payment you would need to refinance or recast the loan.