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Mortgage Payoff Calculator

How much sooner your mortgage is paid off, and how much interest you save, by paying extra each month or making a one-time payment.

Paying $200 extra a month on $300,000 at 6.5% pays the mortgage off 6 years sooner and saves $88,258 of interest.

Paid off in
22 years
Time saved
6 years
Interest saved
$88,258
Your regular payment
$1,941.05

$300,000 at 6.5% with 28 years left: extra monthly payments

Extra a monthPaid off sooner byInterest saved
$1003 years 5 months$51,286
$2006 years$88,258
$50011 years 1 month$157,068
$1,00015 years 7 months$214,396

How this calculator works

Your regular payment clears the balance over the years left. Extra money goes straight to principal, so every later month charges interest on less, and the loan ends sooner.

What it assumes

  • Extra payments are applied to principal (ask your servicer to do so) and there is no prepayment penalty; most mortgages have none.

Questions people ask

How much does paying $200 extra a month save?

On $300,000 at 6.5% with 28 years left, about $88,258 of interest, and the loan ends 6 years early.

Is it better to pay off the mortgage or invest?

Paying down a mortgage earns its interest rate with no risk. If your rate is low and you have high-rate debt or no emergency fund, those usually come first.

Does paying extra lower my monthly payment?

No: the payment stays the same and the loan ends sooner. Some lenders will recast the loan after a large lump sum, re-spreading the lower balance over the remaining term for a smaller payment, usually for a fee.

Do biweekly payments help?

Paying half the monthly payment every two weeks makes 26 half-payments, one extra monthly payment a year, which shortens a 30-year loan by several years.

Related calculators

Sources

Updated by the RateHerald team. The maths is tested against worked examples; report a problem.

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