Mortgage Payoff Calculator
See how extra monthly payments accelerate mortgage payoff and save tens of thousands in interest. Compare current pace vs accelerated payoff to find the right balance.
Impact of extra payments — $300K mortgage at 7%
| Extra/month | Payoff in | Time saved | Interest saved |
|---|---|---|---|
| $0 (baseline) | 30 years | — | — |
| $100 | ~26 yrs | ~4 years | ~$68,000 |
| $200 | ~22 yrs | ~8 years | ~$125,000 |
| $300 | ~20 yrs | ~10 years | ~$155,000 |
| $500 | ~17 yrs | ~13 years | ~$190,000 |
| $1,000 | ~13 yrs | ~17 years | ~$240,000 |
FAQs
How much can I save by paying off my mortgage early?
Significant amounts. Example: 300,000 mortgage at 7% over 30 years = $419,000 total interest. Adding $200/month extra payment cuts the term to ~22 years and saves $125,000 in interest. Adding $500/month: ~17 years and $180,000 saved. The earlier you start, the more dramatic the savings.
Should I pay off my mortgage early or invest?
Depends on your mortgage rate vs expected investment return. If mortgage rate is 7% and you expect 7% real return on investments: roughly equal (slight tax advantage to investment, slight emotional advantage to payoff). Mortgage rate above 8%: usually favor payoff. Below 5%: usually favor investing (especially if not maxing tax-advantaged accounts).
What's the fastest way to pay off a mortgage?
Three main approaches: (1) Bi-weekly payments — pay half the monthly amount every 2 weeks = 13 monthly payments per year vs 12 = ~4-5 years sooner. (2) Round up monthly payment to next $100 or $500 increment. (3) Lump sum extra payments from tax refund, bonus, or sale of unused asset. (4) Refinance to 15-year loan — forces faster payoff.
Do all mortgages allow prepayment without penalty?
Most conventional loans allow unlimited prepayment without penalty. Some older or non-conforming loans (jumbo, certain ARMs, refis from 2008-2014) had prepayment penalties for the first 2-5 years. Read your mortgage note before making large extra payments. Federally backed loans (FHA, VA, USDA) never have prepayment penalties.
Does paying off mortgage early hurt my credit score?
Marginally. Credit score factors include credit mix (different types of accounts). Closing a mortgage reduces 'installment loan' diversity. Expect a 5-30 point temporary dip after payoff. Not enough to matter unless you're actively shopping for a new loan.
Should I make biweekly mortgage payments?
Mathematically equivalent to adding 1 extra monthly payment per year. The 'biweekly trick' works because there are 52 weeks/year = 26 biweekly payments = 13 monthly payments. Saves about 5-7 years on a 30-year mortgage. WARNING: many lenders offer 'biweekly programs' that just hold your payment in escrow then make 12 monthly payments. Make sure they apply each biweekly to principal.