Mortgage Payoff Calculator — Pay Off Your Home Early
How to Use This Mortgage Payoff Calculator
A mortgage payoff calculator shows how extra payments — a lump sum, biweekly, or monthly top-ups — shorten your loan term and cut total interest paid. It’s the tool for anyone asking “what if I paid an extra $200 per month on my mortgage?”
How It’s Calculated
Remaining Balance × Monthly Rate = Interest Portion Payment − Interest Portion = Principal Portion New Balance = Old Balance − Principal Portion − Extra Payment
This is repeated every month until the balance reaches zero, tracking the cumulative interest saved versus the original amortization schedule.
Example
A $350,000 mortgage at 6.5% over 25 years pays roughly $354,000 in interest. Adding $300 per month extra cuts about 7 years off the term and saves over $90,000 in interest.
Frequently Asked Questions
Does paying extra on my mortgage always save money?
Yes, as long as there’s no prepayment penalty — extra payments go straight to principal, which reduces the interest calculated on the remaining balance every month after.
Is it better to pay biweekly or add a lump sum?
Biweekly accelerated payments effectively add one extra full payment a year, while lump sums have a bigger immediate impact on principal. Both work, and biweekly is easier to sustain automatically.
Do extra payments reduce my monthly payment or the term?
By default they shorten the term, not the monthly payment, unless you specifically request re-amortization from your lender.