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Finance

Mortgage Payoff Calculator

See how much interest you save and how many years earlier you pay off your mortgage with extra monthly, biweekly, or one-time lump-sum payments.

Real-World Scenario Presets

Your Mortgage

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%
Years

Payoff Strategy

Choose how you'll pay extra toward principal — each strategy is compared against your standard schedule.

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Estimates for principal-and-interest amortization only and not financial advice. Figures exclude property tax, insurance, PMI, HOA, and any prepayment penalty — check your loan terms before making extra payments. The biweekly result models the standard 'one extra payment per year' approximation.

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Last updated: August 5, 2026
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Pay Off Your Mortgage Early and Save on Interest

Making extra payments toward your mortgage principal can save tens of thousands of dollars in interest and shave years off your loan. This mortgage payoff calculator compares your standard amortization schedule against three early-payoff strategies — extra monthly payments, a biweekly payment plan, or a one-time lump sum — and shows exactly how much interest you save and when you'll be debt-free.

How Extra Mortgage Payments Work

Every mortgage payment splits between interest (the cost of borrowing) and principal (the balance you owe). Early in a loan, most of each payment goes to interest. Any extra money you send is applied straight to principal, which shrinks the balance faster and reduces all the future interest that balance would have generated. Because the effect compounds, even a small, consistent extra payment can retire the loan years early. This tool amortizes both your standard schedule and your chosen strategy month by month to measure the difference.

Monthly Payment Formula

How to Use This Calculator

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Common Ways People Use This Calculator

Deciding on an Extra Payment

Test how $100, $250, or $500 extra per month changes your payoff date and total interest.

Evaluating a Biweekly Plan

See whether switching to biweekly payments is worth it before enrolling in a lender program that may charge fees.

Applying a Windfall

Model a bonus, tax refund, or inheritance as a one-time lump sum and see the interest it wipes out.

Comparing to Investing

Quantify guaranteed interest saved so you can weigh paying down the mortgage against investing the same money.

Planning for Retirement

Find the extra payment that gets you mortgage-free before you retire.

After a Refinance

Enter your new balance and rate to plan how quickly you can pay off the refinanced loan.

Why Use This Mortgage Payoff Calculator?

Compare Three Real Strategies

See extra-monthly, biweekly, and one-time lump-sum payoff strategies each measured against your standard schedule.

Quantify Interest Saved

Get the exact interest saved and the number of years you cut off the loan, not just a vague estimate.

See the Payoff Date

A month-by-month schedule and balance chart show precisely when you'll be mortgage-free under each plan.

Frequently Asked Questions

It depends on your balance, rate, and how early you start, but extra principal payments compound: on a $350,000 loan at 6.5% over 30 years, an extra $500 a month can save well over $100,000 in interest and pay the loan off roughly 8 years early. Enter your numbers above for an exact figure.

Paying off a 30-year loan in 5 years usually requires very large extra payments — often several thousand dollars more per month on top of your regular payment, plus lump sums. Use the extra-monthly or one-time strategy above to see the amount your specific loan would require.

There is no separate early-payoff formula — you use the standard amortization formula, Payment = P × r(1+r)ⁿ / ((1+r)ⁿ − 1), and apply any extra amount directly to principal each month. The calculator re-amortizes month by month after each extra payment to find your new payoff date and interest saved.

A lump sum paid early removes principal sooner, so a dollar applied today saves more interest than the same dollar spread over years. But consistent extra monthly payments are easier to budget and still save a large amount. This calculator lets you compare both.

Yes. Paying half your monthly payment every two weeks results in 26 half-payments — the equivalent of 13 monthly payments, or one extra payment per year. That single extra payment annually can shorten a 30-year loan by 4 to 6 years, depending on your rate.

Paying extra guarantees a return equal to your mortgage rate, tax-free. If you can reliably earn more after tax by investing, investing may win; if not, or if you value being debt-free, extra payments are attractive. Use the interest-saved figure here as the guaranteed benchmark.

No. Extra principal payments shorten the loan term but do not reduce your required monthly payment. To lower the required payment you would need to refinance or ask your lender about a loan recast.

Some loans carry a prepayment penalty in the first few years, so check your note first. Otherwise the main trade-offs are reduced liquidity and, for some, a smaller mortgage-interest tax deduction. This tool covers principal and interest only.

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