2026 Mortgage Payoff Calculator
See how much you can save by making extra payments on your mortgage
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Payoff Comparison Over Time
Total Cost Comparison
Your Total Savings with Extra Payments
By paying an extra $200/month, you could save this much over the life of your loan!
Understanding Mortgage Payoff Strategies
Paying off your mortgage early can be one of the most financially rewarding decisions you make. By making extra payments toward your principal, you reduce the amount of interest that accrues over time. Even small additional payments can lead to significant savings and help you achieve financial freedom years ahead of schedule.
Our calculator helps you visualize the impact of extra payments on your mortgage. Whether you can add $50 or $500 per month, understanding your potential savings empowers you to make informed decisions about your financial future.
Why Pay Off Your Mortgage Early?
Save Thousands in Interest
Extra payments go directly to principal, reducing the total interest you pay over the loan term.
Pay Off Years Earlier
Consistent extra payments can shorten your mortgage by 5-10 years or more.
Build Equity Faster
Increase your home equity more quickly, providing financial security and borrowing power.
Achieve Financial Freedom
Own your home outright and enjoy life without monthly mortgage payments.
Frequently Asked Questions
When you make extra payments, the additional money goes directly toward reducing your principal balance. Since interest is calculated on the remaining principal, a lower balance means less interest accrues each month. Over time, this compounds into substantial savings because you're paying interest on a smaller amount for fewer years.
This depends on your mortgage interest rate, expected investment returns, risk tolerance, and financial goals. If your mortgage rate is higher than potential after-tax investment returns, paying it off early may be beneficial. However, if you can earn higher returns elsewhere, investing might make more financial sense. Consider consulting a financial advisor for personalized advice.
Some mortgages include prepayment penalties, especially in the first few years of the loan. Review your mortgage agreement or contact your lender to understand if any penalties apply to your loan. Most conventional loans originated after 2014 do not have prepayment penalties due to regulatory changes.
There are several effective strategies: Make one extra payment per year, add a fixed amount to each monthly payment, or round up your payment to the nearest hundred. Some people also use tax refunds or bonuses for lump-sum principal payments. The key is consistency and ensuring extra payments are applied to principal, not future payments.
This calculator provides accurate estimates based on standard amortization formulas. Results assume a fixed interest rate and consistent extra payments. Actual results may vary slightly based on your lender's specific calculation methods, payment timing, and any fees. For precise figures, consult your mortgage servicer.