See how extra payments can help you pay off your mortgage years early and save thousands in interest
Enter month number (1-300) for one-time payment
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Our early mortgage payoff calculator is a powerful financial tool that shows homeowners exactly how making extra payments toward their mortgage principal can significantly reduce the loan term and save thousands in interest. Whether you're considering adding a fixed amount to your monthly payment or making occasional lump-sum payments, this calculator provides precise projections of your potential savings.
Paying off your mortgage early is one of the most effective ways to build wealth and achieve financial freedom. Our mortgage early payoff savings calculator helps you understand the impact of different extra payment strategies, from small monthly additions to annual windfalls. With rising home values and historically low interest rates, now is an excellent time to evaluate how extra payments can accelerate your path to homeownership without debt.
Let's calculate the savings from making extra payments on a typical mortgage:
Based on these inputs, your current monthly payment would be approximately $1,266.71. By adding $200 per month to your payment, you would pay off your mortgage 4.2 years early, in January 2045 instead of March 2049. This strategy would save you $38,500 in interest over the life of the loan. Our extra payment mortgage calculator shows that even small additional amounts can have a dramatic impact on your financial future.
Save tens of thousands in interest by reducing the principal balance faster.
Achieve peace of mind and financial security by eliminating your largest monthly expense.
Redirect money that would have gone to interest toward investments or other financial goals.
Gain flexibility in retirement by eliminating housing costs from your monthly budget.
This depends on your risk tolerance, investment returns, and mortgage interest rate. Paying extra on a 4-5% mortgage provides a guaranteed return equal to your interest rate. If you can consistently earn more than that in investments, investing may be better. However, paying off your mortgage provides security and peace of mind that investments cannot.
Both strategies can be effective. Monthly extra payments provide consistent progress and discipline, while lump-sum payments (from bonuses, tax refunds, etc.) can have a more significant immediate impact. Our mortgage early payoff savings calculator allows you to model both approaches to see which works best for your situation.
Not always. You must specifically designate extra payments for principal reduction. Otherwise, your lender might apply them to future interest payments or escrow accounts. Always include a note with your payment indicating it's for principal reduction only.
Paying extra on your mortgage reduces the total interest you pay over the life of the loan, which reduces your tax deduction for mortgage interest. However, this reduction in tax benefits is typically much smaller than the interest savings from paying down the principal faster.
Most mortgages allow extra payments without prepayment penalties, but you should verify this with your lender. Some loans, particularly government-backed loans, may have restrictions or requirements for extra payments. Always confirm with your lender before making extra payments.