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Mortgage Payoff Calculator

Calculate how extra payments can help you pay off your mortgage faster and save thousands in interest

Loan Details

$

Original loan amount

%

Current mortgage interest rate

Original loan term in years

Standard monthly payment schedule

$

Additional amount to pay each month

$
$0$0$2,000

What-If Scenarios

Quickly test variations of your loan amount

Keyboard Shortcuts

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Results

Monthly Payment

$1,520.06

Standard Total Interest

$247,218.47

Payoff Comparison

Amortization Schedule

MonthPaymentPrincipalInterestBalance
1$1,520.06$395.06$1,125$299,604.94
2$1,520.06$396.54$1,123.52$299,208.4
3$1,520.06$398.03$1,122.03$298,810.37
4$1,520.06$399.52$1,120.54$298,410.85
5$1,520.06$401.02$1,119.04$298,009.83
6$1,520.06$402.52$1,117.54$297,607.31
7$1,520.06$404.03$1,116.03$297,203.27
8$1,520.06$405.55$1,114.51$296,797.73
9$1,520.06$407.07$1,112.99$296,390.66
10$1,520.06$408.6$1,111.46$295,982.06
11$1,520.06$410.13$1,109.93$295,571.94
12$1,520.06$411.67$1,108.39$295,160.27

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Important Disclaimer

Not Financial Advice: This calculator provides estimates for educational and informational purposes only.

  • Results are based on the information you provide
  • Actual results may vary based on individual circumstances
  • Consult a qualified professional before making financial decisions

Calculation History

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How Extra Payments Help You Save

Making extra mortgage payments directly reduces your principal balance, which means you'll pay less interest over the life of your loan. Even small extra payments can lead to significant savings and help you become mortgage-free years earlier.

Benefits

  • •Extra payments go 100% toward principal
  • •Lower principal means less interest accrues
  • •You can save years off your mortgage term
  • •Build home equity faster

Things to Know

  • •Most modern mortgages have no prepayment penalty
  • •Specify extra payment goes toward principal
  • •Make extra payments consistently for best results
  • •Consider emergency fund before extra payments

Common Mistakes to Avoid

When paying off your mortgage early, homeowners often make these costly mistakes. Learn what to avoid to maximize your savings and stay financially secure.

Draining Your Emergency Fund

The Problem: Using all your savings to make extra mortgage payments, leaving no emergency cushion.

The Solution: Keep 3-6 months of expenses in an emergency fund before aggressively paying down your mortgage. Financial security comes first.

Ignoring Higher-Interest Debt

The Problem: Paying extra on a 4% mortgage while carrying credit card debt at 18-24% APR.

The Solution: Eliminate high-interest debt first. You're "earning" 18-24% guaranteed returns by paying off credit cards before making extra mortgage payments.

Not Specifying "Principal Only"

The Problem: Sending extra payment without clear instructions, causing it to be applied to next month's payment instead of principal.

The Solution: Clearly mark extra payments as "principal only" or "apply to principal." Confirm with your lender that payments are credited correctly.

Skipping Retirement Contributions

The Problem: Prioritizing mortgage payoff over 401(k) contributions, especially when employer matches are available.

The Solution: Always capture full employer 401(k) match (that's free money!). Then balance between retirement savings and mortgage payoff based on your age and goals.

Forgetting Tax Deductions

The Problem: Not considering that mortgage interest is tax-deductible, making your effective interest rate lower than the stated rate.

The Solution: Factor in your tax bracket. If you're in the 24% bracket with a 4% mortgage, your effective rate is ~3%. Compare this to other investment opportunities.

Overlooking Prepayment Penalties

The Problem: Making large extra payments without checking if your loan has prepayment penalties (rare but they exist).

The Solution: Review your mortgage documents or call your lender to confirm no prepayment penalties. Most modern mortgages don't have them, but always verify.

Pro Tip: The best mortgage payoff strategy is balanced. Build your emergency fund, maximize employer 401(k) match, pay off high-interest debt, then make extra mortgage payments. This approach protects you financially while still accelerating your path to mortgage freedom.

Partner Spotlight

Want to benchmark more debt payoff tactics? Explore WealthWise for calculators that pair perfectly with an accelerated mortgage strategy.

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