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Mortgage Payoff Calculator

See how extra payments shorten your loan term and reduce total interest.

Inputs

$
%
years
$

Result

New Payoff Time18.1 yrs
Original Payoff Time25.0 yrs
Interest Saved$58,711.74
Months Saved83

About the Mortgage Payoff Calculator

The Mortgage Payoff Calculator shows how adding extra to each monthly payment shortens your loan and cuts the total interest you pay. Even small monthly additions can save years and tens of thousands of dollars over a 30-year loan.

Calculation method

Every extra dollar goes straight to principal, which reduces the balance the next month's interest is charged on. The tool amortizes the loan with and without the extra payment and compares the payoff dates.

Interest_month = Balance × APR/12
Principal_month = (Payment + Extra) − Interest_month
Balance_next = Balance − Principal_month

How to use this calculator

  1. Enter your current balance, interest rate, and remaining term.
  2. Enter the extra amount you plan to add each month.
  3. Compare the new payoff time and interest saved on the right.

Example

A $180,000 balance at 6.5% with 25 years left has a $1,215 payment. Adding $200 per month pays it off in about 20 years and saves roughly $50,000 in interest.

Frequently asked questions

Is prepaying a mortgage always a good idea?

It saves guaranteed interest, but only after you fund an emergency reserve and any employer-matched retirement account. Long-term investments may return more than the mortgage rate saves.

Are there prepayment penalties?

Most modern US mortgages have no prepayment penalty, but check your note. Some subprime and non-QM loans still include them for the first few years.

Should I refinance instead?

Refinance if a lower rate saves more than the closing costs within your expected time in the home. Otherwise, extra principal payments give similar savings with no fees.

Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.