MortgCalc.com
🏠 Pay Off Your Home Faster
Mortgage Payoff Calculator
See exactly how much sooner you’ll be debt-free — and how much interest you’ll save — by making extra mortgage payments.
✓ Monthly, annual & one-time extra payments
✓ Full amortization schedule
✓ Interest savings shown instantly
Mortgage Payoff Calculator
Enter your current mortgage details and any extra payments to see how fast you can pay it off.
Your Current Mortgage
$
%
yrs
$
Leave 0 to auto-calculate
Extra Payments (Optional)
$
❌ Without Extra Payments
Payoff Date—
Total Interest—
Total Paid—
✅ With Extra Payments
Payoff Date—
Total Interest—
Total Paid—
Payoff Timeline Comparison
Original: — months
With extra payments: — months
Amortization Schedule
| Year | Balance | Principal Paid | Interest Paid | Extra Paid |
|---|
The Real Cost of a 30-Year Mortgage
- Example$300,000 at 6.75% for 30 years — monthly payment of $1,945
- Total paid$700,000+ over 30 years — more than double the loan amount
- Interest aloneOver $400,000 in interest on a $300,000 loan at 6.75%
- Extra $200/moCuts the loan by ~4 years and saves roughly $60,000 in interest
- Key insightThe earlier you make extra payments, the more you save — interest front-loading is heaviest in years 1–10
What to Know About Prepaying
- ConfirmAsk your lender to confirm extra payments reduce principal, not advance next month’s payment
- SpecifyWrite “Apply to principal” on checks or select “principal only” in your online payment portal
- RecastSome lenders offer mortgage recasting after a large lump sum — keeps payment low, shortens term
- RefinanceIf rates drop 0.75%+, refinancing may save more than extra payments — run both scenarios
- Tax notePaying off your mortgage faster reduces mortgage interest deductions — consult a tax advisor
Mortgage Payoff Calculator — Frequently Asked Questions
How much does an extra $100/month save on a mortgage? ›
It depends on your balance, rate, and remaining term — use the calculator above for your exact numbers. As a rough guide: on a $300,000 mortgage at 6.75% with 25 years remaining, an extra $100/month saves approximately $35,000–$45,000 in interest and cuts about 2–3 years off the loan. The earlier in the loan you start, the more you save — because more of your payment is going toward interest in the early years.
What is the fastest way to pay off a mortgage? ›
The fastest strategies are: (1) Make bi-weekly payments instead of monthly — this results in 13 full payments per year instead of 12, cutting a 30-year mortgage by roughly 4–5 years. (2) Apply any bonuses, tax refunds, or windfalls as lump-sum principal payments. (3) Increase your monthly payment by any amount — even $50–$100 compounds significantly over time. (4) Refinance to a shorter term (15-year) if rates allow — though this raises your required monthly payment.
How does bi-weekly mortgage payment work? ›
Instead of making one full monthly payment (12 per year), you pay half your monthly payment every two weeks (26 half-payments = 13 full payments per year). That extra payment goes entirely to principal. On a typical 30-year mortgage, bi-weekly payments cut the payoff time by 4–5 years and save tens of thousands in interest. Important: make sure your lender actually applies the bi-weekly payments immediately and doesn’t hold them until the end of the month.
Should I pay off my mortgage early or invest instead? ›
This is a common financial planning question with no single right answer. The math-first argument: if your mortgage rate is 6.75% and you can reliably earn more investing (historically stocks average 7–10% annually), investing wins on paper. The behavior argument: paying off your mortgage is a guaranteed, risk-free return equal to your interest rate — it also provides peace of mind and reduces monthly obligations. A middle path: contribute enough to get any employer 401k match first, keep an emergency fund, then split remaining savings between investments and extra mortgage payments.
Does making extra mortgage payments reduce the monthly payment? ›
No — making extra principal payments does not reduce your required monthly payment. Your standard payment stays the same; you simply pay the loan off earlier. The exception is mortgage recasting: some lenders allow you to “recast” the loan after a large lump-sum payment, which recalculates your monthly payment based on the new lower balance while keeping the original term. Recasting typically has a small fee ($150–$500) and requires a minimum lump-sum (often $10,000+). Ask your lender if this is available.
What is mortgage amortization? ›
Amortization is the process of paying off a loan through regular scheduled payments over time. On a standard fixed-rate mortgage, each payment is split between interest and principal — but the split changes over time. Early in the loan, most of your payment covers interest and very little reduces the principal. Over time, as the balance decreases, less interest accrues and more of each payment goes to principal. This is why making extra payments early in a mortgage has such a dramatic effect — you’re cutting into the portion of the loan that would have generated the most future interest.