Mortgage Payoff Calculator
A mortgage payoff calculator shows how making extra principal payments accelerates payoff and reduces total interest paid. Because mortgage interest is front-loaded (amortized), even small extra payments in the early years save disproportionately large amounts of interest.
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Tip: Before making extra mortgage payments, ensure there is no prepayment penalty in your loan terms. Also consider whether the money is better used paying off higher-rate debt first (credit cards, personal loans).
- 1Standard amortization: each payment covers interest first, then principal
- 2Extra payments go entirely to principal, reducing future interest
- 3Interest saved = (Standard total paid) − (With extra payments total)
- 4Months saved = Standard term − Actual payoff month with extra payments
$300,000 loan, 7%, 30yr, +$200/month extra=5 years faster, ~$70,000 interest savedExtra $200/month makes a large difference
$250,000 loan, 6.5%, 30yr, +$500/month extra=~9 years faster, ~$100,000 saved
| Extra Payment | Payoff Time | Interest Saved |
|---|---|---|
| $0 | 30 years | $0 |
| $100/month | ~27.5 years | ~$40,000 |
| $200/month | ~25 years | ~$70,000 |
| $500/month | ~20 years | ~$130,000 |
| $1,000/month | ~15 years | ~$190,000 |
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Fun Fact
On a typical 30-year mortgage at 7%, you pay more in interest than you borrowed. A $300,000 loan costs about $718,000 total — $418,000 in interest. Extra payments can cut this dramatically.
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