Mortgage Payoff Calculator
See how extra monthly payments shorten your mortgage term and cut interest. Estimate your payoff date and interest saved.
An extra amount added to your regular payment and applied to the principal.
Payoff time
15 years 11 months
Standard: 20 years 1 months
Interest saved
$35,008
vs. paying only the standard amount
Total interest
$110,311
Standard interest: $145,319
Total you pay
$310,311
$1,632.86 per month
Extra principal payments cut both the payoff time and the total interest.
How it works
Simulate each payment with extra principal applied to the balance; months = count until balance reaches zero.
Example: $200,000 at 6% with $200 extra/month → paid off ~5.5 years early, saving ~$48,000 in interest.
Last updated: March 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Mortgage payoff planning is about one question: how much faster can I clear my home loan if I pay extra every month? This calculator compares the standard schedule against a plan with extra monthly payments, showing the months shaved off the term and the total interest saved — often lakhs of rupees on a long Indian home loan. Homeowners use it when a bonus or salary hike arrives, deciding whether to put extra money into the mortgage or into investments, and the side-by-side comparison makes the trade-off visible. It also models a one-time lump-sum prepayment, which banks on floating-rate loans accept without penalty in India.
How to Use This Calculator
- Step 1: Enter your current mortgage balance, interest rate and remaining years.
- Step 2: Enter the extra amount you can pay each month, such as 200.
- Step 3: Read the new payoff date and the interest saved compared with the regular schedule.
- Step 4: Adjust the extra amount up or down to see how much each increase shortens the term.
Worked Example
A homeowner owes $200,000 at 6% for 30 years, with a regular payment of about $1,199. Enter 200000 as the balance, 6 as the rate, 30 as the remaining years and 200 as the extra monthly payment. The payoff date moves from 360 months to about 252 months, which is 21 years, and the interest paid drops from about $231,676 to about $151,876, saving roughly $79,800. The same extra $200 also ends the loan about 9 years earlier.
Tips and Common Mistakes
- •Tip 1: Extra payments shorten the term only if the lender applies them to the principal; confirm this with your servicer.
- •Tip 2: One extra payment per year, split across twelve months, is the easiest way to reproduce this effect without changing your budget much.
- •Tip 3: Check whether you have a higher-interest debt elsewhere, since paying that off first often beats prepaying a low-rate mortgage.
- ✗Mistake 1: Entering the extra payment as an annual amount when the field expects it monthly, which shortens the term more than you intend.
- ✗Mistake 2: Assuming a one-time lump sum is treated the same as a recurring monthly extra, since the two produce very different payoff dates.
Frequently Asked Questions
How do extra payments shorten my mortgage?
Every extra dollar you apply to principal reduces the balance faster, which cuts the interest charged and shortens the loan. Enter a one-time or monthly extra payment to see the years and interest saved.
Should I make one extra payment a year or pay monthly?
A monthly extra payment — for example a 13th payment spread across 12 months — attacks the principal earlier, so it saves slightly more interest than one lump payment at year-end.
Is it better to pay extra on my mortgage or invest?
If your mortgage rate is low and you can earn more in a tax-advantaged investment, investing may win. Paying extra guarantees a risk-free, tax-free return equal to your mortgage rate.
Does prepaying my mortgage have a penalty?
Some lenders charge a prepayment penalty, though most modern loans do not. Check your mortgage note or ask your lender before making large extra payments.
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