How to use this mortgage payoff calculator
- Current balance — how much you still owe on the mortgage today, not the original loan amount.
- APR — your annual interest rate as a percentage.
- Current monthly payment (P&I) — the principal-and-interest part of your payment. Leave out escrow for taxes and insurance.
- Extra monthly payment — the additional amount you plan to put toward principal each month.
The results update instantly as you type. You will see your new payoff time with the extra payment, how much time you save versus your current pace, the interest you will still pay, and the total interest the extra payments save you over the life of the loan.
How paying off a mortgage early works
A mortgage is an amortizing loan: each month, interest is charged on your remaining balance, and whatever is left of your payment reduces the principal. The calculator runs your amortization twice — once at your current payment and once with the extra amount added — then compares the two. Because every extra dollar lands directly on principal, it removes all the future interest that dollar would have generated. Early in a loan most of each payment is interest, so even a modest extra payment can shave years off the term and save a large amount of total interest.
Tips for paying off your mortgage faster
- Round up your payment: bumping your payment up to the next round number is an easy, painless extra.
- Apply windfalls: tax refunds and bonuses sent to principal make an outsized dent.
- Confirm it goes to principal: tell your servicer the extra is a principal-only payment, not a prepayment of next month.
- Check for penalties: most U.S. mortgages have no prepayment penalty, but verify yours before you start.
Frequently asked questions
How does paying extra each month pay off my mortgage early?
Every extra dollar goes straight to your principal balance. A smaller balance means less interest is charged next month, so more of every future payment also goes to principal. That snowball effect shortens the loan and cuts total interest.
What should I enter for the monthly payment?
Enter only the principal-and-interest (P&I) portion of your payment. Leave out escrow amounts for property taxes and homeowners insurance, since those are not part of paying down the loan.
Is making extra mortgage payments worth it?
It depends on your rate and goals. Extra payments earn a guaranteed return equal to your mortgage rate, but the cash is then tied up in your home. Compare it against other uses such as retirement contributions or higher-rate debt.
Is my data uploaded?
No — everything is calculated in your browser and nothing is sent anywhere.
This tool is for general information only and is not financial advice.
Related: Loan & Mortgage Calculator, Compound Interest Calculator, Savings Goal Calculator.