Mortgage Payoff Calculator
See exactly how much time and money you can save by making extra payments on your mortgage. Enter your current balance, rate, and the extra amount you want to pay each month to see the impact on your payoff timeline and total interest.
Making extra payments on your mortgage is one of the most effective ways to build equity and save on interest. Even modest additional payments can produce dramatic results. On a $280,000 mortgage at 6.5% over 25 years, adding just $300 per month saves approximately $95,000 in interest and pays off the mortgage over 7 years earlier.
The savings come from two compounding effects: first, each extra dollar goes directly to principal, reducing the balance that accrues interest. Second, with a lower balance, a larger portion of each subsequent regular payment goes to principal instead of interest, creating an accelerating payoff effect.
Before making extra mortgage payments, consider whether the money might work harder elsewhere. If your mortgage rate is 3-4%, you may earn more by investing the extra payment in the stock market (historically 7-10% returns) or paying off higher-rate debt first. At 6-7% mortgage rates, extra payments become more competitive with investment returns and offer a guaranteed, risk-free return equal to your interest rate.