How Advantageous Are Extra Payments?

Small additional monthly payments can have a big impact on your mortgage.

Input your current loan details and a potential extra payment amount to see how much time and money you could save on your journey to becoming mortgage-free.

Loan Amount

Interest Rate

Loan Term (years)

Extra Payment Frequency

Extra Payment Amount

Begin In Year

Begin In Month

End In Year

End In Month

By paying extra, you could save

in interest and pay off your loan 0 years and 0 months sooner.

Interest Paid Over Time

Loan Balance Over Time

Amortization Schedule

How Quickly Can You Pay Off Your Mortgage?

Making payments greater than your required monthly amount can substantially reduce the total interest you pay and shorten the life of your loan. Even small additional amounts applied directly to your principal can save you tens of thousands of dollars and help you build equity faster. Our early payoff calculator crunches the numbers to show your potential savings.

How To Use Our Early Payoff Calculator

Ready to see how extra payments could benefit you? Input the following information into each section of the calculator to view your detailed results.

Loan Amount. The amount you borrowed to purchase your home.

Interest Rate. The cost of borrowing money from the lender, calculated as a percentage of the amount of the loan.

Loan Term (years). The total duration of the loan, which has a major impact on the amount of total interest you will pay over time.

Extra Payment Frequency. How often you’re able to make extra payments, either once, annually, semi-annually, quarterly, or monthly.

Extra Payment Amount. How much each extra payment will be.

Begin In Year/Month. At what point in the life of the loan you’re able to start making extra payments.

End In Year/Month. When, in the life of the loan, you plan to cease making extra payments.

Unlocking Your Savings: Understanding Your Results

The early payoff calculator provides a clear comparison of your original mortgage schedule versus your new, accelerated schedule. Your results will be broken down to show:

Interest Saved and New Payoff Date: See how much you could save on interest and how early you could pay off your mortgage.
Interest Paid Over Time: Compare how much interest you pay on your original loan schedule compared to how much you might save with extra payments.
Loan Balance Over Time: Watch how extra payments decrease the principal balance owed on the loan over the life of the loan, compared to the original schedule.
Amortization Schedule: Check the new amortization schedule with extra payments included.

Strategies For Paying Your Mortgage Off Early

There are several ways to approach making extra payments. Lenders will typically allow you to make extra payments, but it’s important to specify that the additional funds should be applied directly to the principal balance.

Round Up: If your monthly payment is $1,850, consider rounding up to $2,000. That extra $150 per month can have a huge impact.
Bi-Weekly Payments: Pay half of your monthly mortgage every two weeks. Over a year, this results in 26 half-payments, which equals 13 full monthly payments instead of 12.
Use Windfalls: Apply unexpected income like tax refunds, work bonuses, or inheritance directly to your mortgage principal.
Refinance: Refinancing to a lower interest rate typically lowers monthly payments.^* Continuing to make your current mortgage payment could secure a faster payoff date.

Is Paying Off Your Mortgage Early Always the Best Move?

What you can do versus what you should do may be different. While owning your home free and clear is a common goal, consider your broader financial picture.

For example, if you have other, higher-interest debts like credit card balances or personal loans, it may be more beneficial to pay those off first. The interest rate on that debt is likely much higher than your mortgage rate (e.g., 22% on a credit card vs. 6% on a mortgage).

Additionally, some people may choose to invest their extra cash in the stock market. If your mortgage rate is a relatively low 4%, and you believe you can earn an average return of 8% in the market over the long term, investing the difference could be a more effective way to build wealth.^** It’s important to assess your personal risk tolerance and financial goals.