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Mortgage Payoff Calculator
Your mortgage payoff calculator helps you estimate the time and money you could save just by adding extra payments to your mortgage loan. It allows you to see, in real time, how small changes can help you pay off your mortgage early.
This type of mortgage calculator is especially useful for homeowners exploring strategies to reduce long-term interest costs or to determine whether mortgage refinancing is the better option.
Mortgage Payoff Calculator
Enter your current mortgage details to see how extra monthly payments can shorten your payoff timeline and reduce your total interest cost. Results update automatically as you adjust the numbers.
Your Mortgage Details
Input your current mortgage balance, APR, and remaining term. Then add an extra monthly payment to estimate your payoff savings.
Results
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Mortgage Balance Over Time
Explore More Ways to Improve Your Monthly Cash Flow
Use related tools to compare borrowing options, plan payoff strategies, and make smart financial decisions.
What This Calculator Shows
When you make extra payments on your mortgage loan, the additional amount is typically applied directly to the loan principal. This reduces your remaining balance faster, lowering the amount of interest you owe and potentially shortening your overall loan term.
However, it’s essential to keep in mind that all results are for illustrative purposes only and should be used as estimates only.
How to Use This Mortgage Payoff Calculator
To use the calculator effectively, enter the same details shown on your mortgage statement, then test various additional payment amounts. The calculator automatically updates as you input or make changes to your information.
Have your current mortgage documentation available and enter:
- Mortgage balance: The amount you still owe on your mortgage loan.
- Interest rate: Your current mortgage interest rate.
- Remaining loan term in months: How many payments are left on your existing loan
- Current monthly payment: Your principal and interest payment (total monthly payment)
- Extra monthly payment: Any additional amount you can pay each month.
Once you enter the information, the calculator compares your current payoff schedule with a new, accelerated plan.
Early Mortgage Payoff Calculator: Paying Extra Toward Your Loan
In reality, this calculator serves as an early mortgage payoff calculator and focuses specifically on how additional payments can help you pay off your mortgage early.
Paying extra each month can:
- Shorten your mortgage loan term
- Reduce total interest paid
- Build home equity faster
- Eliminate mortgage payments sooner
This strategy can be especially effective in the early years of a mortgage, when interest makes up a larger portion of each payment. However, any time is a good time to start saving money.
Pro TipConfirm How Your Lender Applies Extra PaymentsFrom our on-staff Certified Financial Educator: In most cases, your mortgage lender will automatically apply any extra payments, or dollar amounts over your minimum monthly obligation, to your principal balance. That is, the money won’t needlessly go toward paying interest. However, some lenders may require you to tag the additional payment as going toward “principal only.” If not applied correctly, additional payments may be treated as early payments instead of principal payments. While not common, before assuming your extra effort is going where you want it to go, check these details with your lender:
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When Does It Make Sense to Pay Off a Mortgage Early?
Paying off your mortgage early can make sense when your finances are stable, and you want to reduce long-term interest costs. You can use it as a strategy to become debt-free sooner and improve cash flow later in life.
Paying extra may be worth considering if:
- You have consistent room in your budget to pay extra each month.
- Making a higher payment won’t cause a budget shortfall in other essential spending categories.
- You want to shorten your loan term
When Paying Extra on a Mortgage May Not Be Ideal
In some situations, making additional payments may not be the best financial move. It’s important to weigh mortgage payoff goals against other priorities. You may also consider other mortgage strategies, such as refinancing through a trusted lender like LendingTree.
Paying extra may not make sense if:
- You have higher-interest debt elsewhere
- You lack emergency savings
- Making extra payments limits your ability to invest or save
More Calculator Resources
Paying extra on your mortgage isn’t the only way to strengthen your financial situation. These tools can help you evaluate other spending categories and make informed decisions.
- Auto Loan Early Payoff Calculator
- Personal Loan Calculator
- Debt Consolidation Calculator
- Home Equity Loan Calculator
- HELOC Payment Calculator
- Debt Snowball Calculator
- Monthly Budget Calculator
- Auto Loan Refinance Calculator
Could Debt Consolidation Help?
In some cases, reducing other high-interest debt through debt consolidation can free up monthly cash flow, making it easier to put additional money toward your mortgage payoff.
If you’re juggling credit cards or personal loans along with your mortgage, the options below could help you simplify payments.
FAQs
Does Paying Extra on a Mortgage Always Save Interest?
In most cases, yes. Extra payments reduce your principal balance faster, which lowers the amount of interest that accrues over time. However, your actual savings depend on your interest rate, loan term, and how early and consistently you can make additional payments.
Are Bi-Weekly Payments Better Than Monthly Extra Payments?
Bi-weekly payments can reduce interest by effectively adding one extra mortgage payment per year. However, the benefit is similar to making consistent extra monthly payments. What matters most is the total additional amount paid toward principal, not the payment schedule itself.
Next Steps
Decide whether paying extra toward your mortgage fits with your overall financial goals. In some cases, you may wish to access equity in your home. LendingTree offers competitive refinancing, while the best home equity loan providers can also help you access funds you already have in the form of equity.
Use your mortgage payoff calculator to test different scenarios, confirm payment application rules with your lender, and then decide the best option for your budget.