Mortgage Payoff Calculator
See how long it will take to pay off your remaining mortgage balance.
Your Details
Principal vs. Interest
What you'll actually pay in total
- Principal$280.0K
- Interest$196.2K
Payoff Time by Monthly Payment
How faster payments shorten your timeline
Balance Over Time
How your balance declines as you pay it down
Principal vs. Interest by Year
How much of each year's payments go to interest
How It Works
- Enter your current balance and interest rate.
- Enter the amount you plan to pay each month.
- Press Calculate to see your payoff timeline.
Formula Used
Each month's interest is charged on the remaining balance, then the rest of the payment reduces principal.
Good to Know
- • Extra payments go straight to principal.
- • Higher-APR balances cost more the longer they carry.
Important Notes
- • Assumes a fixed payment and fixed rate.
- • If payment doesn't cover interest, balance won't shrink.
Extra Payments and Your Mortgage
Because mortgages are typically long-term, even small extra payments compound into large interest savings and years shaved off the loan. Entering a higher monthly payment above shows the effect directly on the payoff timeline and total interest — a common strategy is rounding up to the next hundred dollars, or making one extra payment a year.
Check for Prepayment Penalties First
Most modern mortgages don't penalize early payoff, but it's worth confirming with your loan documents before committing to an aggressive extra-payment plan, especially on older or non-standard loans. It's also worth keeping an emergency fund intact rather than directing every spare dollar toward the mortgage.
A Quick Glossary
- Extra principal payment — any amount above the required payment, applied directly to the balance.
- Payoff acceleration — the combined effect of extra payments shortening the loan and cutting interest.
Let's Run the Numbers: Extra Payments on a $280,000 Balance
At 6.5% with a required $2,200/month payment, adding $200 extra:
+$200/month extra: payoff roughly 4-5 years sooner, tens of thousands saved in interest
Extra Payment Comparison Table
| Extra/Month | Years Saved (approx.) |
|---|---|
| $100 | ~2 years |
| $200 | ~4-5 years |
| $400 | ~8-9 years |
Where People Go Wrong When Paying Off a Mortgage Early
- Draining emergency savings to pay extra — keep liquidity before aggressive prepayment.
- Not checking for prepayment penalties — rare today but worth confirming on older loans.
- Ignoring the opportunity cost — if your mortgage rate is low, investing might outperform prepaying.