Mortgage payoff calculator
This mortgage payoff calculator shows how much sooner you will pay off your mortgage and how much interest you will save with extra payments.
Amortization schedule
| Year | Principal | Interest | Extra | Balance |
|---|---|---|---|---|
| 1 | $3,896.34 | $17,304.66 | $3,000.00 | $273,103.66 |
| 2 | $4,339.92 | $16,861.08 | $3,000.00 | $265,763.74 |
| 3 | $4,812.03 | $16,388.97 | $3,000.00 | $257,951.71 |
| 4 | $5,314.52 | $15,886.48 | $3,000.00 | $249,637.19 |
| 5 | $5,849.30 | $15,351.70 | $3,000.00 | $240,787.89 |
| 6 | $6,418.52 | $14,782.48 | $3,000.00 | $231,369.37 |
| 7 | $7,024.34 | $14,176.66 | $3,000.00 | $221,345.03 |
| 8 | $7,669.11 | $13,531.89 | $3,000.00 | $210,675.92 |
| 9 | $8,355.39 | $12,845.61 | $3,000.00 | $199,320.53 |
| 10 | $9,085.76 | $12,115.24 | $3,000.00 | $187,234.77 |
| 11 | $9,863.16 | $11,337.84 | $3,000.00 | $174,371.61 |
| 12 | $10,690.54 | $10,510.46 | $3,000.00 | $160,681.07 |
| 13 | $11,571.12 | $9,629.88 | $3,000.00 | $146,109.95 |
| 14 | $12,508.40 | $8,692.60 | $3,000.00 | $130,601.55 |
| 15 | $13,505.90 | $7,695.10 | $3,000.00 | $114,095.65 |
| 16 | $14,567.59 | $6,633.41 | $3,000.00 | $96,528.06 |
| 17 | $15,697.59 | $5,503.41 | $3,000.00 | $77,830.47 |
| 18 | $16,900.24 | $4,300.76 | $3,000.00 | $57,930.23 |
| 19 | $18,180.27 | $3,020.73 | $3,000.00 | $36,749.96 |
| 20 | $19,542.60 | $1,658.40 | $3,000.00 | $14,207.36 |
| 21 | $12,457.36 | $305.69 | $1,750.00 | $0.00 |
Does paying off the mortgage early make sense?
Extra payments earn a guaranteed return equal to your mortgage rate, which is attractive when rates are high. If your rate is low, you may do better keeping cash for other goals. Before paying extra, keep an emergency fund, take any employer retirement match and pay off higher-rate debt first.
How to make extra payments count
Tell the servicer the extra amount is for principal. Many borrowers use round-ups, one extra payment a year or biweekly payments. Recast, offered by some lenders, lowers the payment after a lump sum without refinancing.
How much extra helps
On $280,000 at 6.25% over 28 years, an extra $250 a month saves $95,091 in interest and finishes the loan 88 months early.
| Extra / month | Months saved | Interest saved |
|---|---|---|
| $0 | 0 | $0 |
| $50 | 23 | $25,983 |
| $100 | 43 | $47,533 |
| $200 | 75 | $81,440 |
| $400 | 120 | $127,327 |
Frequently asked questions
How much interest can extra payments save?
On a 30-year mortgage, an extra $250 a month can cut many years and tens of thousands in interest. Enter your balance and rate to see your figure.
Is there a penalty for paying early?
Most modern mortgages have none, but check your note for a prepayment clause.
Do extra payments always reduce the loan term?
If your lender applies them to principal, yes. Some lenders treat extra money as an early payment of the next installment instead, so tell them to apply it to principal.
Is there a prepayment penalty?
Most auto loans and mortgages today have none, but some do, so check your loan agreement.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.