Mortgage Payoff Calculator
Find out how much sooner you will own your home with extra payments.
The power of extra payments
Interest is charged on the balance you still owe, so every extra dollar you pay early stops interest on that dollar for the rest of the loan. Even a small monthly extra can cut years from a mortgage.
Example
A 220,000 balance at 6.5% with 25 years left has a normal payment of about 1,485 a month. Adding 300 a month clears the loan in 17 years and saves about 81,770 in interest.
Before you pay extra
- Check that extra payments are applied to the principal, and that there is no prepayment fee.
- Keep an emergency fund first, because you cannot easily get paid-off mortgage money back.
- Compare the mortgage rate with what you could earn elsewhere.
Frequently asked questions
Is it better to pay extra or invest?
If your mortgage rate is higher than what you can safely earn after tax, paying it down wins. If not, investing may do better, though with more risk.
What about biweekly payments?
Paying half the monthly amount every two weeks makes 26 half-payments, or one extra monthly payment a year. Enter that amount divided by 12 as the extra.
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