How to use the mortgage payoff calculator
- Enter your mortgage balance today (from your latest statement), the interest rate and the years left on the loan.
- Add an extra amount each month, a one-time extra payment you could make now, or tick biweekly payments.
- Read your new payoff date, the time saved and the interest saved. The table compares several extra amounts side by side.
What extra payments do
$280,000 balance, 6.5%, 27 years left, payment $1,835.55 (principal and interest):
| Extra a month | Paid off in | Interest saved |
|---|---|---|
| $0 | 27 years | — |
| $100 | 23 years 8 months | about $46,300 |
| $200 | 21 years 2 months | about $79,700 |
| $500 | 16 years 3 months | about $141,600 |
| $1,000 | 11 years 10 months | about $192,900 |
Without extra payments, the remaining interest on this loan is about $314,700, more than the balance itself. Every extra dollar goes to principal and stops interest from building on it for the rest of the loan.
Three ways to pay extra
Extra every month. The simplest and most powerful habit. Set up an automatic extra principal payment with your servicer.
Biweekly payments. Paying half the payment every two weeks adds up to one extra full payment a year. In the example that saves about $65,200 and 4 years 9 months. Watch out for third-party "biweekly programs" that charge fees for something you can do yourself by adding 1/12 of a payment each month.
Lump sums. A tax refund, bonus or inheritance. A $10,000 payment today saves about $43,300 and takes about 2½ years off this loan. The earlier in the loan, the bigger the effect.
Pay off the mortgage or invest?
Every extra dollar on a 6.5% mortgage earns a guaranteed 6.5%, tax-free in effect if you don't itemize. Investing might earn more on average, but not every year. A common order:
- Emergency fund: three to six months of expenses (emergency fund calculator).
- The full employer 401(k) match.
- High-interest debt such as credit cards.
- Then split extra money between retirement investing and the mortgage, depending on your rate and how much you value being debt-free.
At low mortgage rates (3–4%), many people lean toward investing; at 6–7%, paying extra looks much better. The compound interest calculator shows what the same money could grow to if invested.
Before you send extra money
- Ask for principal-only. Tell your servicer to apply extra money to principal, not to future payments.
- Check for a prepayment penalty. Rare today, but read your loan note.
- Keep cash for the house. Roofs, water heaters and repairs don't wait. Keep a home repair fund before you prepay.
- Consider a recast. After a big lump sum, some lenders will recalculate a lower monthly payment for a small fee.
Buying, not paying off yet?
If you're still house hunting, see how much house you can afford and estimate the cash you'll need with the closing costs calculator. Buying to rent out? The rental property calculator checks cash flow.
Watch your equity grow
Paying down a mortgage raises your net worth every month. Summit is a net worth tracker that shows your home equity next to your savings, investments and debts, with a monthly check-in and a forecast. Vault keeps your budget and goals in one dashboard. Both have a free demo with sample data you can open in your browser.
Estimates for a fixed-rate loan, principal and interest only. Taxes and insurance paid through escrow aren't affected by extra payments.
Frequently asked questions
How much do extra mortgage payments save?
Do biweekly mortgage payments really help?
Is it better to pay extra each month or make one lump sum?
Should I pay off my mortgage early or invest?
Will extra payments lower my monthly payment?
Are there penalties for paying off a mortgage early?
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
