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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.
Przewodnik krok po kroku
- 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
Rozwiązane przykłady
Wejście
$300,000 loan, 7%, 30yr, +$200/month extra
Wynik
5 years faster, ~$70,000 interest saved
Extra $200/month makes a large difference
Wejście
$250,000 loan, 6.5%, 30yr, +$500/month extra
Wynik
~9 years faster, ~$100,000 saved