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🏁Mortgage Payoff Calculator (Extra Payments)

Add an extra amount to your monthly mortgage payment and instantly see how many years and how much interest you would save. The bottom line: even a small extra payment can save you tens of thousands of dollars over a 30-year loan.

Last updated: · Reviewed by The CalcWise Team

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How to use this calculator

  1. Enter your current loan balance, interest rate, and the number of years left on the loan.
  2. Type the extra amount you can add to each monthly payment.
  3. Click Calculate to see your new payoff date, the time saved, and the total interest you avoid.

How it works

A mortgage payoff calculator shows the effect of paying more than your required monthly payment. Because mortgage interest is calculated on the outstanding balance, every extra dollar you pay goes straight to principal and stops accruing interest for the entire remaining life of the loan.

The savings are largest early in the loan, when the balance — and therefore the interest charged each month — is at its highest. This is why adding even $100–$200 a month in the first few years can shave years off a 30-year mortgage and save five figures in interest.

Before committing extra cash to your mortgage, make sure you have no higher-interest debt (such as credit cards) and a healthy emergency fund. Mortgage debt is typically the cheapest money you will ever borrow.

Example: On a $320,000 loan at 6.5% over 30 years, the normal payment is about $2,022/month and you would pay roughly $408,000 in interest. Adding $200/month pays the loan off about 6½ years early and saves more than $100,000 in interest.

Frequently asked questions

Does paying extra on my mortgage really save money?
Yes. Every extra dollar goes straight to principal, which reduces the balance interest is charged on. Over a 30-year loan this can save tens of thousands of dollars and cut years off the term.
Is it better to pay extra monthly or make one lump sum?
Both help. Extra monthly payments are easier to budget and start saving interest immediately. A lump sum early in the loan has the biggest single impact because interest is front-loaded.
Should I tell my lender the extra is for principal?
Yes. Specify that additional payments apply to principal, otherwise some servicers apply it to the next month's payment instead.

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