Mortgage Payoff Calculator
See how extra monthly payments or a one-time lump sum move up your payoff date and how much interest you save.
Your Mortgage
Your Payoff Results
Balance by Year
| Years from now | Balance — no extra | Balance — with extra | Interest saved so far |
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Table of Contents
What Is a Mortgage Payoff Calculator?
A mortgage payoff calculator shows how paying more than your required amount changes your loan. Enter your loan details plus an extra monthly payment, a one-time lump sum, or both, and it compares two schedules side by side: your original loan, and your loan with the extra payments. You see the new payoff date, how many months or years earlier you will be debt-free, and how much interest you avoid paying.
How to Use This Calculator
Enter your original loan amount, interest rate, and loan term, then the number of monthly payments you have already made. The calculator works out your current balance and regular principal-and-interest payment. Next, add an extra amount you could pay each month, a lump sum you could pay now, or both. The results show your interest saved, both payoff dates, and a year-by-year balance table. Taxes, insurance, and PMI are not included because they do not affect how quickly the principal is paid down.
Example
Take a $300,000 mortgage at 6.5% for 30 years. The principal-and-interest payment is about $1,896 a month. After five years of normal payments the balance is roughly $280,800, with 25 years to go and about $288,000 of interest still ahead.
- Add $200 a month: the loan is paid off in 20 years instead of 25, saving about $67,000 in interest.
- Pay a $20,000 lump sum instead: the loan is paid off about 3 years and 10 months early, saving about $69,000 in interest.
Small, steady extra payments and a single lump sum can both make a large difference, especially when they start early in the loan.
Ways to Pay Off Your Mortgage Early
- Extra monthly principal: add a fixed amount to every payment. Even $50 to $100 a month adds up over decades.
- Biweekly payments: paying half your payment every two weeks results in 26 half-payments, or 13 full payments a year, which is one extra payment annually. Tick "Switch to biweekly payments" in the calculator to see the effect. Check first that your servicer applies biweekly payments right away rather than holding them until a full payment builds up, and avoid paid biweekly programs, since you can get the same result by adding 1/12 of your payment each month.
- Lump-sum payments: put a bonus, tax refund, or inheritance toward principal.
- Round up: rounding a $1,896 payment up to $2,000 is an easy way to prepay about $100 a month.
- Refinance to a shorter term: a 15-year loan usually has a lower rate but a much higher required payment.
Paying Off Early vs. Recasting
If you make a large lump-sum payment, you have a choice. Keep paying your normal amount and the loan is paid off sooner, which saves the most interest. Or ask your lender to recast your mortgage, which re-amortizes the lower balance so your required monthly payment drops while the payoff date stays the same. Recasting saves less total interest but frees up monthly cash flow. Our Mortgage Recast Calculator shows the new payment and interest saved if you recast.
Before You Prepay
- Build an emergency fund first, since money paid into your home is hard to get back quickly.
- Pay off higher-interest debt such as credit cards before prepaying a lower-rate mortgage.
- Check your loan for a prepayment penalty.
- Tell your servicer that extra payments are for principal only, and confirm it on your statement.
- If you are paying PMI, see how much you need to pay down to remove it with our PMI Removal Calculator.
Frequently Asked Questions
How can I pay off my mortgage faster?
The most common ways are adding a fixed extra amount to your monthly payment, making one or more lump-sum principal payments, or switching to biweekly payments (which adds the equivalent of one extra monthly payment each year). Every extra dollar goes straight to principal, so it shortens the loan and cuts total interest.
How much interest do extra mortgage payments save?
It depends on your rate, balance, and how early you start. For example, on a $300,000 loan at 6.5% for 30 years, adding $200 a month starting after year five pays the loan off 5 years early and saves about $67,000 in interest.
Is it better to pay extra each month or make a lump sum?
Both reduce interest. A lump sum saves more when it is paid early because it stops interest from accruing on that amount right away. Extra monthly payments are easier to fit into a budget. Use the calculator to compare both with your own numbers.
Should I pay off my mortgage early or recast it?
Prepaying and keeping your normal payment pays the loan off sooner and saves the most interest. A recast uses a lump sum to lower your required monthly payment instead, keeping the original payoff date. If cash flow matters more than an early payoff date, compare the two with our Mortgage Recast Calculator.
Do extra payments automatically go to principal?
Not always. Some servicers apply extra money to future payments or escrow. Tell your servicer the extra amount is for principal only, and check your statement to confirm it was applied that way.
Is there a penalty for paying off a mortgage early?
Most conventional mortgages today have no prepayment penalty, but some loans do, usually in the first few years. Check your loan documents or ask your servicer before making large prepayments.
Results are estimates for a fixed-rate loan and are for informational purposes only. Your servicer's figures may differ slightly.