Mortgage Payoff Calculator
See how extra payments on your mortgage can save you thousands in interest and years of payments.
See how extra payments on your mortgage can save you thousands in interest and years of payments.
Amount above your normal monthly payment
Every dollar of extra principal payment reduces the balance on which interest is charged. Early in the loan, most of the standard payment is interest — extra principal payments exponentially accelerate payoff by reducing the interest-earning balance each month.
Monthly Interest = Remaining Balance × (Rate / 12) | Earlier payoff from extra payments reduces compounding base each subsequent monthOn a $280,000 / 30-year / 7% mortgage, paying an extra $200/month saves roughly 5–6 years of payments and over $80,000 in interest. Small extra payments have outsized impact due to compound interest.
Making one extra mortgage payment per year (equivalent to ~$200/month extra on average) follows the same principle. Many homeowners use tax refunds or bonuses for this purpose.
Amortization is recomputed month-by-month adding the extra payment to principal. New payoff month is when balance reaches zero. Interest saved is the difference in total interest paid.