Even a modest extra payment each month can shave years off a mortgage and save a substantial amount in interest, because it reduces the balance that future interest is calculated on. Enter your loan details and an extra monthly amount to see the effect.
Mortgage Payoff Calculator
LiveWhy extra payments have an outsized effect
Every extra dollar applied to principal stops accruing interest for the rest of the loan. Because interest compounds on a shrinking balance, paying down principal sooner — even by a modest amount — removes years of future interest charges, not just that one payment's worth.
A $300,000 loan at 6.5% over 30 years, paying an extra $200/month: the loan is paid off in about 23.1 years instead of 30 — 6.9 years sooner — saving approximately $103,449 in interest.
Step-by-step guide
- Enter your loan amount, rate, and original term.
- Enter an extra amount you could realistically pay each month.
- Compare the time and interest saved against making no extra payments. Try a few different extra amounts to see the trade-off.
Common mistakes
Frequently asked questions
Is paying extra always the best use of spare cash?
Not necessarily — compare your mortgage rate to what you could earn investing instead, and make sure you have an adequate emergency fund and no higher-interest debt first.
Should I refinance instead of paying extra?
They solve different problems — refinancing changes your rate or term permanently, while extra payments let you keep flexibility (you can stop anytime) while still shortening the loan. See our Refinance Calculator to compare that option directly.
Is there a prepayment penalty?
Most standard mortgages today don't charge one, but always check your loan documents — some loans, particularly certain non-standard or older products, may include a prepayment penalty clause.
Related calculators
See the complete Financial Calculators guide for the full list, or try: