Home Payoff Calculator — Early Mortgage Payoff
Calculate how much sooner you can pay off your mortgage with extra monthly payments or a lump sum. See total interest saved and your new payoff date.
About the Home Payoff Calculator — Early Mortgage Payoff
Even small extra payments toward your mortgage principal can save tens of thousands in interest and shave years off your loan. Our home payoff calculator shows you exactly how much sooner you'll be mortgage-free with any extra monthly payment or one-time lump sum.
See your new payoff date, months and years saved, and the total interest you'll avoid paying — so you can decide whether to accelerate your mortgage or invest the extra cash elsewhere.
The power of extra principal payments
On a $300,000 30-year mortgage at 7%, paying just $200/month extra saves over $77,000 in interest and cuts 5+ years off the loan. The savings are so large because early extra payments reduce the principal balance the bank calculates future interest on — creating a compounding effect in reverse. The earlier in the loan you pay extra, the greater the savings.
Lump sum vs. monthly extra payments: which is better?
A large lump sum at the start of a loan delivers the most total interest savings (since it reduces the balance on which all future interest is calculated). However, consistent extra monthly payments may be more practical for most homeowners. You can combine both strategies — apply a tax refund or bonus as a lump sum while paying $100–$200 extra each month.
Should you pay off your mortgage early or invest?
If your mortgage rate is 7–8%, guaranteed 'return' from eliminating that interest often exceeds what conservative investments yield risk-free. However, if your mortgage rate is 3–4% (a common rate for loans originated 2020–2022), investing in a diversified index fund historically outperforms paying down that cheap debt. The right answer depends on your risk tolerance, rate, and timeline.