Early Payoff Calculator

How extra payments shrink your mortgage

Every dollar of extra principal you pay reduces the balance that interest is calculated on — and because interest is front-loaded on a mortgage, early extra payments have an outsized effect. A small monthly addition can cut years off your loan and save tens of thousands in interest.

Two payoff strategies to consider

• Biweekly payments — pay half your mortgage every two weeks instead of once a month. Since there are 52 weeks in a year, you make 26 half-payments = 13 full payments. That one extra annual payment cuts ~4 years off a 30-year loan.
• Lump-sum payments — apply bonuses, tax refunds, or inheritance directly to principal. Even one $5,000 lump sum in year 3 of a mortgage can save $15,000+ in interest over the life of the loan.

Should you pay off your mortgage early?

The math: if your mortgage rate is 6.5% and your investments return 7% after tax, investing wins. If your rate is 3% from a 2021 refinance, you should almost never pay it early — invest instead. But there's a psychological value to being debt-free that the math can't capture. This calculator shows you the financial trade-off; the decision is yours.

Before making extra payments

• Confirm your loan has no prepayment penalty (most don't, but check)
• Specify "apply to principal" when paying — lenders may default to "next month's payment" otherwise
• Build an emergency fund first — don't lock cash in your house you might need
• Pay off higher-interest debt (credit cards) before tackling mortgage principal