Calculate how much you can save and how fast you can pay off your mortgage with extra payments. See interest savings and new payoff date.
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Making extra mortgage payments can save you tens of thousands in interest and shave years off your loan. Our mortgage payoff calculator shows exactly how much you'll save and when you'll be debt-free. See the impact of different payment strategies before committing.
A mortgage payoff calculator determines how extra payments reduce your loan term and interest costs. By applying additional payments to principal, you reduce the balance faster, which means less interest accumulates over time. Even small extra payments ($50-100/month) can save thousands and cut years from your loan.
Interest Savings Formula
S = I_s - I_eExtra payments go directly to principal, dramatically reducing total interest. A $200/month extra payment on a $300K loan at 6% saves over $80,000.
More of each payment goes to principal instead of interest, building home equity quicker for future refinancing or selling.
Pay off your home years earlier, freeing up monthly cash flow for retirement savings, investments, or other goals.
Add $100-500 to your monthly payment. This steady approach is easy to budget and yields significant long-term savings.
Use tax refunds, bonuses, or windfalls to make one large payment per year. Can be as effective as monthly extras.
Pay half your mortgage every two weeks instead of monthly. This results in 13 full payments per year instead of 12.
Refinance to a lower rate but keep making your old payment amount. The difference goes straight to principal.
If your payment is $1,847, round up to $2,000. Small increases that barely impact your budget but save years.
Apply inheritances, bonuses, or side income directly to principal for massive time and interest savings.
The '2% rule' suggests that making extra payments equal to 2% of your loan balance annually can reduce your 30-year mortgage by 5-7 years. For a $300K mortgage, that's $6,000 per year or $500 per month. This aggressive strategy maximizes savings but requires careful budgeting.