How do extra mortgage payments reduce interest?

Extra payments go directly toward reducing your principal balance. A lower balance means less interest accrues each month, so more of each future payment goes to principal, creating a compounding payoff acceleration.

What is the best way to make extra mortgage payments?

The most effective approach is adding a fixed extra amount to your principal each month. Even a small extra payment, such as $100–$200 per month, can save tens of thousands of dollars in interest and shave years off your loan.

Does this calculator account for taxes and insurance?

No. This calculator focuses on principal and interest only. Your actual monthly payment may be higher if it includes property taxes, homeowner's insurance, or PMI through an escrow account.

Can I use this for any type of mortgage?

Yes. The calculator works for any fixed-rate mortgage or home loan. For adjustable-rate mortgages, use the current rate and note that your results will be an estimate based on that rate remaining constant.

How much extra should I pay each month?

Even small amounts make a significant difference. Try entering $50, $100, or $200 as extra payments to see the impact. The calculator will show you exactly how many months earlier you will be mortgage-free and how much interest you will save.

Mortgage Payoff Calculator

Overview

Calculate how extra monthly payments reduce your mortgage payoff date and total interest paid. See exactly how much time and money you can save by paying more each month.

The Mortgage Payoff Calculator shows you the impact of making extra principal payments on your home loan. Enter your remaining balance, interest rate, and current monthly payment, then add any extra amount you can pay each month to see how much sooner you could be mortgage-free and how much interest you will save over the life of the loan.

How to use

Find out how much faster you can pay off your mortgage with extra payments.

Enter your remaining mortgage balance: Input the current outstanding balance on your mortgage loan.
Add the interest rate: Enter the annual interest rate (APR) on your mortgage.
Choose a repayment approach: Pick whether you want to calculate by monthly payment amount or by a target payoff timeframe.
Add an extra monthly payment: Enter any extra amount you can put toward principal each month to see how much time and interest you save.

FAQs

How do extra mortgage payments reduce interest?: Extra payments go directly toward reducing your principal balance. A lower balance means less interest accrues each month, so more of each future payment goes to principal, creating a compounding payoff acceleration.
What is the best way to make extra mortgage payments?: The most effective approach is adding a fixed extra amount to your principal each month. Even a small extra payment, such as $100–$200 per month, can save tens of thousands of dollars in interest and shave years off your loan.
Does this calculator account for taxes and insurance?: No. This calculator focuses on principal and interest only. Your actual monthly payment may be higher if it includes property taxes, homeowner's insurance, or PMI through an escrow account.
Can I use this for any type of mortgage?: Yes. The calculator works for any fixed-rate mortgage or home loan. For adjustable-rate mortgages, use the current rate and note that your results will be an estimate based on that rate remaining constant.
How much extra should I pay each month?: Even small amounts make a significant difference. Try entering $50, $100, or $200 as extra payments to see the impact. The calculator will show you exactly how many months earlier you will be mortgage-free and how much interest you will save.