Mortgage Payoff Calculator
See how fast you can pay off your home — and how much interest you'll save by making extra principal payments.
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Extra payments go directly to principal
Results are estimates only. Consult a licensed financial professional.
Standard Payoff
How to Pay Off Your Mortgage Faster
Does making extra mortgage payments really save money?
Yes — significantly. On a $400,000 30-year mortgage at 7%, adding just $200/month in extra principal payments saves over $80,000 in interest and cuts roughly 6 years off the loan term. The earlier in the loan you start, the more you save, because interest is front-loaded in standard amortization.
What's the best way to pay off my mortgage faster?
The most effective strategies are: (1) making bi-weekly payments instead of monthly — this results in one extra full payment per year; (2) making a lump-sum payment when you receive a bonus or tax refund; (3) rounding up your monthly payment to the nearest hundred. Always confirm with your lender that extra payments are applied to principal, not future interest.
Should I pay off my mortgage early or invest instead?
It depends on your mortgage rate vs. expected investment returns. If your mortgage rate is 7% and you expect the stock market to return 8–10% annually, investing may yield more. However, paying off your mortgage provides a guaranteed, risk-free return equal to your interest rate, plus peace of mind. Most financial advisors suggest doing both: maintain retirement contributions and make modest extra mortgage payments.
Does paying extra principal reduce my monthly payment?
In most cases, no — extra principal payments shorten the loan term but don't reduce the required monthly payment on a standard fixed-rate mortgage. If you want to lower your monthly payment, you'd need to refinance. However, once the loan is paid off, you free up the full monthly payment.
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Results are estimates for educational purposes only and do not constitute financial advice. Always consult a licensed mortgage professional before making financial decisions.