Mortgage Payoff Calculator
Enter your loan details to see how extra payments can save you time and money.
Your Mortgage Payoff Details
Original vs. Accelerated Payoff
Your Savings Summary
Time Saved:
Interest Saved:
How to Pay Off Your Mortgage Early
Paying off your mortgage ahead of schedule is one of the smartest financial moves you can make. By making extra payments, you can significantly reduce your mortgage amortization schedule and cut down on the total interest you pay. Our calculator shows you exactly how to pay off a mortgage faster by comparing your current plan to an accelerated one.
The key to an early mortgage payoff is understanding the difference between paying down the mortgage principal vs interest. When you make an additional payment, 100% of that money goes directly to your principal, reducing the base on which interest is calculated. This creates a powerful snowball effect, leading to a much shorter loan term and substantial interest savings.
Compare Your Payoff Options
Not all mortgage prepayment strategies are the same. Our tool allows you to explore various options and determine which one is right for you. You can:
- Make an extra monthly payment to consistently pay down your principal.
- Add a one-time lump sum payment from a bonus or tax return.
- See the effects of a bi-weekly payment schedule, which often adds one full month of extra payments per year without you even noticing.
Use our best mortgage calculator tools to compare different scenarios and visualize the impact with an interactive graph. Whether you’re looking for a simple way to estimate your payoff or want a detailed mortgage amortization schedule, our tool has you covered.
Frequently Asked Questions (FAQs)
How does a mortgage payoff calculator work?
A mortgage payoff calculator takes your loan details—such as the principal amount, interest rate, and regular payment—and calculates the time it takes to pay off the loan. When you add extra payments, it re-calculates the schedule to show you how much faster you’ll pay it off and how much you’ll save on interest.
What happens if I pay extra on my mortgage?
Paying extra on your mortgage directly reduces your outstanding principal balance. This means less of your next payment goes toward interest and more goes toward principal, accelerating your loan repayment timeline. It’s a great way to save money and pay off your home sooner.
Can I shorten my loan term with prepayments?
Yes, absolutely. By making prepayments—whether a little extra each month or a large one-time lump sum—you can significantly shorten your loan term. Our early payoff mortgage calculator shows you the exact time and interest savings so you can plan your mortgage prepayment strategy.
How is interest calculated in a mortgage?
Mortgage interest is calculated on your remaining principal balance. The early years of a mortgage are heavily weighted toward interest payments because your principal balance is at its highest. As you pay down the principal, the interest portion of your payments decreases over time.
How does biweekly mortgage payment help?
A biweekly payment plan involves making half of your normal monthly payment every two weeks. This results in 26 half-payments a year, which is equivalent to 13 full monthly payments. This extra payment goes directly to your principal, helping you pay off your loan faster and save thousands in interest.