Mortgage Payoff Calculator
0 mo sooner payoff
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How Extra Payments Shorten Your Mortgage
Every extra dollar you put toward your mortgage goes straight to principal, which means it stops accruing interest for the rest of the loan. Because interest is calculated on the remaining balance each month, even modest extra payments early in the loan compound into large interest savings and a materially shorter payoff time. This calculator compares your original amortization schedule (based on your current balance, rate, and payment) against a new schedule that applies your extra monthly and/or annual payments directly to principal.
A Note on the Inputs
If you don't know your exact current principal-and-interest payment, leave the field at the estimated value calculated from your balance, rate, and remaining term — this is the standard fixed-rate amortization assumption most lenders use. The calculator assumes any extra annual payment is made once per year (at the 12-month mark of each year) in addition to your regular monthly payments.
Compare Your Options
Curious how a full refinance would compare to simply paying extra? Try the refinance calculator to see if a lower rate beats accelerated payoff, or use the amortization calculator to view a complete month-by-month breakdown of any loan.
Frequently Asked Questions
How do extra payments reduce my mortgage payoff time so much?
Because interest is charged only on your remaining balance each month, any extra amount you pay reduces principal immediately and permanently lowers every future interest charge. This compounding effect means even a few hundred extra dollars a month can cut years off a 30-year loan and save tens of thousands in interest.
Should I make extra payments monthly or as one lump sum each year?
Paying extra every month saves slightly more interest than a single annual lump sum of the same total amount, since the balance is reduced sooner and interest accrues on a lower principal for more of the year. That said, an annual lump sum (for example, from a tax refund or bonus) is still highly effective and easier for many households to budget for.