US Mortgage payoff calculator
Find out how much sooner you'd be mortgage-free with an extra monthly payment — or the exact extra payment needed to pay off by a target date.
Your mortgage today
Check your loan terms first — some mortgages (especially fixed-rate UK/AU products) cap annual overpayments or charge early-repayment fees.
- On current payment
- 19y 3m · $188,697.23 interest
- Accelerated
- 16y 0m · $152,422.67 interest
Every extra unit of principal stops all the future interest that would have accrued on it — that's why modest extra payments compound into years saved. Estimates only — not financial advice.
How early mortgage payoff is calculated
The calculator simulates your loan month by month: each month interest accrues on the remaining balance, your payment (plus any extra) is applied, and the balance falls. With an extra payment, the balance falls faster — so the next month's interest is smaller, so even more of the payment hits principal. That feedback loop is why modest extra payments compound into years saved.
Worked example
$250,000 remaining at 6.5% with a $1,900/month payment clears in about 23 years with roughly $267,000 of interest. Add $200/month and it clears in about 18½ years with roughly $205,000 of interest — 4½ years sooner and about $62,000 saved. (Figures vary with your exact inputs.)
Payoff vs investing the difference
Extra principal earns a guaranteed, tax-free return equal to your mortgage rate. A diversified portfolio has historically earned more — with volatility. A pragmatic order of operations most planners agree on: employer pension match first, high-interest debt second, then split between mortgage and investments according to your rate and sleep-at-night preference. At a 6.5% mortgage rate the guaranteed return is genuinely competitive; at 2%, investing usually wins on the math.
Before you start overpaying
- Confirm there's no early-repayment charge or annual overpayment cap on your product.
- Keep your emergency fund intact — money in the house is hard to get back out.
- Tell the lender extra payments are for principal reduction, not advance instalments.
- Recasting or refinancing may suit you better if cash flow, not total interest, is the problem — compare with the refinance calculator.
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Frequently asked questions
How much sooner will I pay off my mortgage with an extra $200 a month?
Is it better to pay off the mortgage or invest the extra money?
Do extra mortgage payments have penalties?
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