Mortgage Payoff Calculator
See how much faster you'll be mortgage-free — and how much interest you'll save — by adding extra to your monthly payment or making a one-time lump sum.
Time Saved
6 yr 4 mo
You'd be mortgage-free by February 2048 — and save $86,555 in interest.
With vs. Without Extra Payments
| Current Plan | With Extra | |
|---|---|---|
| Payoff Time | 28 yr | 21 yr 8 mo |
| Total Interest | $328,713 | $242,158 |
| Base Monthly Payment | $1,811.65 | |
| Interest Saved | $86,555 | |
Why Extra Payments Pay Off So Big
Every extra dollar you send goes straight to principal — the part of your balance that generates interest. Knock down principal early and you erase years of compounding interest. That's why adding just $200/mo here trims 6 yr 4 mo off your loan and saves $86,555.
The effect is strongest in the early years of a mortgage, when most of your regular payment is interest and very little touches principal. A one-time lump sum — a tax refund, bonus, or inheritance — applied now does far more than the same amount applied a decade from now.
Prefer to lower your payment without refinancing? A mortgage recast re-amortizes your loan after a lump sum. If rates have dropped, compare that against a full refinance, and keep an eye on where rates sit with our mortgage rates guide. You can also model a new loan in the mortgage calculator.
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Frequently Asked Questions
Is it better to pay extra each month or one big lump sum?
Both work; the math just depends on timing. A lump sum applied now removes principal immediately and saves the most interest. Consistent extra monthly payments are easier to budget and add up powerfully over time. This calculator lets you combine both.
Will my lender apply extra payments to principal automatically?
Not always. Some lenders apply extra money to future interest or hold it unless you specify. Always mark extra payments as "apply to principal" — online portals usually have a separate field for this. Confirm it lands on principal on your next statement.
Are there prepayment penalties?
Most modern conventional mortgages have no prepayment penalty, but some loans do, especially within the first few years. Check your note or ask your servicer before sending large extra payments so you aren't hit with a fee.
Should I pay off my mortgage early or invest instead?
It's a trade-off between a guaranteed return (your mortgage rate) and potential market returns. If your rate is high, paying down is a solid guaranteed win. If your rate is low, investing may earn more over time. Many people do a bit of both.
Does paying extra lower my monthly payment?
No — extra payments shorten the loan term, not the required monthly amount. To actually lower the required payment after a lump sum, you'd need a mortgage recast, which re-amortizes the loan over the original term.