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Mortgage Payoff Calculator

Calculate how extra payments can help you pay off your mortgage early. See years saved, interest saved, and new payoff date.

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How to Pay Off Your Mortgage Faster

Even small extra payments can dramatically reduce your mortgage term and total interest paid. On a $280,000 balance at 6.75%, adding $300/month saves approximately $95,000 in interest and pays off the loan 9 years early.

Extra Monthly Payments

The most consistent approach. Even $100/month extra on a 30-year mortgage can shave 5+ years off the loan. The key is that extra payments go entirely to principal, reducing the balance that accrues interest every month.

Biweekly Payments

Paying half your monthly payment every two weeks results in 26 half-payments per year (equivalent to 13 monthly payments instead of 12). This one extra payment per year can cut 4-5 years off a 30-year mortgage.

Annual Lump Sum

Using your tax refund, bonus, or year-end savings as an annual lump sum payment is highly effective. A $3,000 annual extra payment on a $280,000 mortgage at 6.75% saves approximately $68,000 in interest.

Should You Pay Off Your Mortgage Early?

It depends. If your mortgage rate is below 4-5%, the money might grow faster invested in the stock market (historically 7-10% returns). But paying off your mortgage offers guaranteed savings equal to your interest rate, plus the psychological benefit of being debt-free. Use our Compound Interest Calculator to compare both scenarios.

Frequently Asked Questions

How much can I save with extra payments?
On a $280,000 loan at 6.75%, extra $300/month saves ~$95,000 in interest and pays off 9 years early. Even $100/month saves ~$43,000 and 5 years. The savings are enormous because of reduced compounding.
Is it better to pay off my mortgage or invest?
If your mortgage rate exceeds expected investment returns (after taxes), pay off the mortgage. If your rate is low (under 4-5%), investing may yield better returns. Many people do both: invest in their 401K to get the match, then apply extra to the mortgage.
Do I need to tell my lender about extra payments?
Most lenders accept extra payments automatically. Specify that extra amounts should be applied to principal (not future payments). Some online portals have an "additional principal" field. Check with your lender.
Should I refinance instead of paying extra?
If you can reduce your rate by 1%+ and plan to stay in the home, refinancing may save more than extra payments. Use our Refinance Calculator to compare. You can also refinance to a shorter term AND make extra payments.

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Strategies for Paying Off Early

Extra payments go entirely to principal. Biweekly: saves $50K+. Lump-sum: $5K in year 3 saves ~$17K. Rounding up: $2,200 vs $2,076 saves $38K, cuts 4 years.