Finance Calculators
Mortgage Early Payoff Calculator
See how extra monthly payments reduce your total interest and shorten your mortgage term.
Mortgage Early Payoff Calculator
See how extra payments reduce your interest and payoff time.
This calculator is for educational estimates only and is not financial advice.
Payoff Summary
- Monthly payment (P&I)
- $1,896.20
- With extra payment
- $2,096.20
- Standard Interest
- $382,633.47
- Interest with Extra
- $279,184.67
- Interest Saved
- $103,448.79
- Time Saved
- 6 yr 11 mo
This calculator is for educational estimates only and is not financial advice. Actual lender terms may vary.
How extra mortgage payments work
Your regular monthly mortgage payment covers both interest and principal. When you add an extra payment, that entire amount goes toward reducing your principal balance. Because interest is calculated on what you still owe, a smaller principal means less interest accrues each month — creating a compounding effect that can save you tens of thousands over the life of the loan and shave years off your term.
Frequently asked questions
- How do extra mortgage payments save money?
- Extra payments go directly toward reducing your principal balance. Because interest is calculated on the remaining balance each month, a lower principal means less interest accrues — and that snowballs into significant savings over the life of the loan.
- How much should I pay extra on my mortgage?
- Even small amounts help. Adding $100–$200 per month to a 30-year mortgage can shave years off your term and save tens of thousands in interest. Use this calculator to model different amounts and see the impact.
- Are there penalties for paying off a mortgage early?
- Some mortgages include a prepayment penalty, though they are less common on newer loans. Check your mortgage agreement or ask your lender before making large extra payments.