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Mortgage payoff calculator
See how fast extra principal payments crush your mortgage. $100 extra per month on a $300k loan saves $84k in interest and 6.5 years. Free, with side-by-side comparison.
Extra payment impact — $300k mortgage at 7%
| Extra/month | Payoff date | Time saved | Interest saved |
|---|---|---|---|
| $0 | Year 30 | — | — |
| $100 | Year 23.5 | 6.5 yrs | $84,000 |
| $200 | Year 20 | 10 yrs | $130,000 |
| $500 | Year 14.5 | 15.5 yrs | $215,000 |
| $1,000 | Year 11 | 19 yrs | $273,000 |
Three ways to accelerate payoff
- Bi-weekly payments: 26 half-payments/year = 13 full payments. Shaves ~6 years off a 30-year mortgage.
- Round up: mortgage payment $1,996 → pay $2,100 every month. Costs $104 extra/month, saves $35k+ over the life of the loan.
- Annual lump sum: tax refund or bonus straight to principal. A $5k annual lump cuts a 30-year mortgage by ~7 years.
Pay off mortgage or invest?
If your mortgage rate is below your expected investment return (after tax), invest. Above it, pay off. With a 7% mortgage rate and 7% expected real return, it's a wash on pure math — but paying down a mortgage is risk-free, while stocks can drop 30%+ in the short term. Many people prefer the certainty.
Tax angle: mortgage interest is only deductible if you itemize, and the standard deduction ($29,200 joint, 2026) already covers most households. The deduction is less valuable than people think.
Mortgage Payoff Calculator FAQ
Should I pay extra principal every month or one lump sum?
Math-wise, earlier is better — every dollar of principal you pay off avoids future interest. A $1,200 lump sum in January saves slightly more than $100/month for that year. But the monthly habit is more sustainable for most people. Both work.
Is paying off a mortgage early always smart?
Not always. If your rate is 3–4% (locked pre-2022), the math strongly favors investing instead — you'd earn more in a 4.5% HYSA without risk. If your rate is 6.5–7.5% (current market), paying down is competitive with investing on a risk-adjusted basis.
Do I need to tell my lender it's an extra payment?
Yes — explicitly direct it 'apply to principal.' Otherwise some lenders apply it as a prepaid future payment, which doesn't reduce the balance and saves zero interest. Use the lender's online portal — most have a 'principal-only payment' field.
Are there mortgage prepayment penalties?
Rare on modern (post-2014) qualified mortgages. Common on older mortgages and on jumbo/non-QM loans. Check your mortgage docs for 'prepayment penalty clause' before sending large lump sums. Typical penalty: 2% of remaining balance in years 1–2, declining to 0.
Does paying off the mortgage early hurt my credit?
Slightly and temporarily. Credit utilization is the wrong frame for mortgages, but closing any account ages your credit mix and history. Score drops ~10–20 points for a few months, then recovers. Long-term zero impact.
Should I refinance instead of paying extra?
If rates dropped 1%+ since you got your mortgage, refinance — even if you plan to pay extra. A lower rate + extra payments compound. Refi when the break-even (closing costs ÷ monthly savings) is under 3 years.