This mortgage payoff calculator shows how adding extra payments or switching to biweekly payments can save you interest and shorten your mortgage term. Use the first calculator if you know your remaining loan term, or the second if you only know your monthly payment.
Use this calculator if the remaining term length is known and you have the original loan details — good for new loans or loans that have never had extra payments.
Use this calculator if the remaining term is unknown. The unpaid principal balance, interest rate, and monthly payment can be found on your monthly or quarterly mortgage statement.
The mortgage payoff calculator on this page shows exactly how much time and money you can save by paying down your mortgage ahead of schedule. A mortgage is, for most people, the largest and longest debt they will ever carry — commonly 15 to 30 years — and the interest paid over that period can rival or even exceed the original loan amount. By making extra payments toward the principal, switching to a biweekly schedule, or paying the balance off in a lump sum, you can shorten the term dramatically and keep tens or even hundreds of thousands of dollars that would otherwise go to interest. This calculator quantifies those savings precisely.
There are two calculators above to fit whatever information you have on hand. The first works when you know your remaining loan term along with the original loan amount, term, and interest rate. The second works when you only know your current unpaid principal balance, monthly payment, and interest rate — the figures printed on every mortgage statement. Both let you compare four repayment strategies and instantly see the interest saved and the years shaved off your loan.
Every mortgage payment is split into two parts: interest, which is the lender's charge for the money you owe, and principal, which actually reduces your balance. Because interest is calculated on the outstanding balance, the early years of a mortgage are interest-heavy — the balance is large, so most of each payment goes to the lender and only a little chips away at what you owe. This is why a standard amortization schedule shows the balance falling slowly at first and then accelerating near the end.
When you make an extra payment, every dollar goes straight to principal. That permanently lowers the balance on which all future interest is calculated, creating a compounding benefit: the interest you avoid this month means a smaller balance next month, which means even less interest, and so on. Paying just a few hundred dollars extra each month can cut years off a 30-year mortgage and save a fortune in interest, because each early dollar of principal eliminates decades of future interest charges.
The most flexible strategy is simply adding extra money to your payments. You can add a fixed amount every month, a lump sum once a year (handy if you receive an annual bonus or tax refund), or a single one-time payment now. The calculator lets you combine all three. Even modest extra monthly payments have an outsized effect early in the loan. For example, on a $400,000 loan at 6% with 25 years remaining, paying an extra $500 per month pays the loan off nearly 8 years sooner and saves well over $100,000 in interest.
With a biweekly schedule, you pay half of your monthly payment every two weeks instead of the full amount once a month. Because there are 52 weeks in a year, this results in 26 half-payments — the equivalent of 13 full monthly payments per year rather than 12. That one extra payment per year, applied entirely to principal, shortens the loan and reduces interest without requiring a large change to your budget. Many borrowers find biweekly payments painless because they align with biweekly paychecks.
If you have the means — perhaps from an inheritance, the sale of an asset, or substantial savings — paying the entire remaining balance at once eliminates all future interest. The calculator's "pay back altogether" option shows the exact payoff amount (your current balance) and the full interest you would avoid. While paying off a mortgage entirely is a powerful move, it is worth weighing against other uses of the money, as discussed below.
For comparison, the calculator can also show your loan on its original schedule with no extra payments. This baseline makes it easy to see exactly how much each accelerated strategy improves on simply paying as agreed.
The calculator first determines your scheduled monthly principal-and-interest payment from the loan amount, term, and interest rate using the standard amortization formula. It then finds your current balance based on how much of the term remains. From there it simulates your loan month by month under your chosen strategy, applying each payment, calculating the interest on the current balance, and reducing the principal until the loan reaches zero. The result is the new payoff date, the total interest paid, and the savings compared with the original schedule. The second calculator skips the original-loan step and works directly from your stated balance and payment, deriving the remaining term itself.
The monthly interest rate used in the simulation is your annual rate divided by twelve. Each month, interest accrues on the outstanding balance, your payment (plus any extra) is applied, and the remainder reduces the principal. The final payment is automatically adjusted so the balance lands exactly on zero. This is the same method lenders use to build an amortization schedule, so the figures match what you would see on your statements.
For each strategy, the calculator reports the new payoff time, the interest you will save, and the time you will save compared with the original schedule. It also shows a side-by-side comparison of total payments, total interest, and remaining interest under the original plan versus your accelerated plan, along with a full amortization schedule you can expand to see every payment. The "interest savings" figure is often the most striking: it represents real money kept in your pocket rather than paid to the lender over the life of the loan.
Accelerating your mortgage is not always the best use of money. Before committing extra cash to your home loan, weigh these factors:
When you send extra money to your lender, make sure it is applied to principal, not held as a prepayment of your next scheduled payment or parked in escrow. Many lenders offer a "principal-only" payment option online or a box to check on a payment coupon. It is wise to confirm with your servicer that extra funds are reducing principal, and to verify on your next statement that the balance dropped accordingly. If you set up biweekly payments, check whether your servicer applies each half-payment immediately or simply holds the first half until the second arrives — the timing affects your savings.
Paying off your mortgage faster and refinancing it are two different ways to reduce the cost of your loan, and they are not mutually exclusive. Refinancing replaces your existing mortgage with a new one, ideally at a lower interest rate or a shorter term. It can lower your monthly payment or accelerate payoff, but it involves closing costs and a new application, and extending the term can actually increase total interest even at a lower rate. Making extra payments, by contrast, requires no fees, no paperwork, and no qualification — you simply pay more whenever you can, and you can stop at any time without penalty. A common strategy is to refinance to a lower rate when rates drop and then continue making the same (higher) payment you were used to, which directs the difference straight to principal and pays the loan off even faster. Use this calculator alongside a refinance calculator to compare both paths for your situation.
Consider a $300,000 mortgage at 6.5% interest on a 30-year term. The scheduled payment is roughly $1,896 per month, and over the full term the borrower would pay about $382,000 in interest — more than the home itself cost. By adding just $200 to each payment, the loan is paid off about six years early and total interest falls by roughly $85,000. Increase the extra payment to $400 a month and the loan is gone nearly ten years ahead of schedule, saving well over $130,000 in interest. These outsized results come from a simple principle: money paid toward principal early in the loan eliminates many years of compounding interest later. The earlier in the loan you start, the larger the effect, which is why even small extra payments in the first decade of a mortgage are so powerful. Enter your own loan above to see the exact numbers for your situation.
It depends on your balance, interest rate, remaining term, and how much extra you pay, but the savings are often dramatic. On a typical 30-year loan, even an extra one or two hundred dollars a month can save tens of thousands in interest and shave several years off the term. Enter your own numbers above to see your specific savings.
Yes, modestly. Paying half your monthly amount every two weeks produces 26 half-payments a year, equal to 13 full monthly payments instead of 12. That one extra payment per year goes entirely to principal, shortening your loan and lowering interest. The effect is smaller than a large extra monthly payment but requires almost no change to your budget.
It depends on your mortgage rate, your expected investment returns, your tax situation, and your appetite for risk. Paying down a mortgage is a guaranteed, risk-free return equal to your interest rate, while investing offers potentially higher but uncertain returns. Many people do both. Always secure an emergency fund and capture any employer retirement match first.
No. Extra payments reduce your principal and shorten the loan term, but your required monthly payment stays the same unless you formally recast or refinance the loan. You simply finish paying sooner. If lowering the monthly payment is your goal, ask your lender about recasting after a large principal payment.
It is a fee some lenders charge if you pay off a large portion of your loan early, designed to recoup interest they would otherwise earn. Most modern conforming mortgages do not have one, but it is important to check your loan documents before making big extra payments or a lump-sum payoff.
No. The calculator works with the principal-and-interest portion of your mortgage only, since that is the part affected by extra payments. Property taxes, homeowners insurance, and PMI are handled separately through escrow and are not reduced by paying down principal (though reaching 20% equity can let you cancel PMI).
This Mortgage Payoff Calculator is provided for educational and general informational purposes only. It estimates principal-and-interest figures using standard amortization math and does not account for every fee, escrow item, prepayment penalty, or lender-specific policy. Actual results may vary. Confirm details with your mortgage servicer and consult a qualified financial professional before making prepayment or payoff decisions.