Mortgage Payoff Calculator – Extra Payments

This mortgage payoff calculator figures the extra payment necessary to cause an early payoff within a specified number of years. Discover how much interest you will save between now and when your mortgage is paid off.

Please Note: You should only enter the principal and interest portion of your regular monthly payment. Do not include tax and insurance escrow accounts.

You can also compare 4 payoff strategies - monthly, bi-weekly, extra payment, and bi-weekly with extra payment using this mortgage calculator - plus it includes amortization schedules as well.

In other words, use this calculator to define time period and payment amount, and use the other calculator to define optimum early payoff strategy.

And if this calculator helped you we'd sure appreciate a "like" or +1. Thanks!

Enter the principal balance owed:
Enter the interest rate:
Enter the regular monthly payment (principal & interest only):
Number of years to pay-off mortgage in:
Extra payment (monthly) required:
Interest savings:

How Much Extra Should You Pay To Payoff Your Mortgage Early?

You dream of paying off your mortgage early.

You long for the day when you are debt free.

But how do you do it?

How much must you pay each month to be out of debt by a certain date?

What if you wanted to pay off your mortgage in 15 years instead of 30? How much would you save?

The good news is this mortgage payoff calculator makes figuring out your required extra payment easy.

You choose how quickly you’d like to pay off your mortgage, and the calculator will tell you the required extra monthly payment to get it done. It will also tell you how much interest you’ll save!

However, before you start making your extra payments, there are a few factors you’ll want to consider first . . . .

Factors To Consider When Paying Off The Mortgage Early

Living without any debt is an exciting goal, but paying off your mortgage needs to be done right. Here are some important considerations:

  • Will you incur penalties for overpaying your mortgage?Some mortgage lenders have prepayment penalties or other loan terms designed to prevent you from prepaying. Make sure to contact your lender and read the fine print in your mortgage contract to determine if this applies to you.
  • Do you have credit card or any other debts? Many other types of debt, like credit card debt, have higher interest rates. It’s usually more advantageous to pay off any consumer debt before you pay off the mortgage.
  • Have you set aside a sufficient emergency fund? It’s generally a good idea to set aside money in an emergency fund to cover expenses that are not included in your budget or to protect from a rainy day. Build a solid financial foundation first!
  • Is your debt oppressing you? Some people feel debt rules their lives. If debt is stressing you out, use the Mortgage Payoff Calculator to calculate how much extra money you need to put toward your mortgage every month to get out of debt sooner.

Once you’ve determined that you’re ready to pay off your mortgage, it’s time to start reaping the benefits!

Benefits Of Paying Off Your Mortgage Early

Owning a home without a mortgage is financially liberating. Here are just a few of the key benefits:

  • You save money.  By paying off your mortgage you eliminate interest costs. This lowers your monthly expenses and reduces the total cost to own your home.
  • No interest is better than a mortgage tax deduction. If you keep the mortgage to get the tax deduction then you’re paying $1 to the bank to get a $0.25 tax deduction (assuming a 25% tax bracket). You’re still out $0.75. If you pay off the mortgage, you pay $0.25 in taxes and have $0.75 in your pocket.
  • You will gain the flexibility of using what had been the mortgage payment to invest in retirement or save toward other financial goals. Imagine! Not only will you avoid paying mortgage interest, but you’ll be making money in higher-yielding accounts!

Pitfalls Of Paying Off Your Mortgage Early

Many homeowners think that they should pay off their mortgage early to get out of debt, but does it always make sense?

You do not want to pay off your mortgage and end up low on cash. It’s much easier to take cash out of a checking account when needed than it is to refinance by pulling it out of your home loan.

Ask yourself if you’ll need liquid cash in the near future. If the answer is yes, you’re better off putting your extra money in savings – not toward your mortgage.

Always have a small savings buffer to help you pay for immediate expenses.

Final Thoughts

There are many competing financial goals to consider first before committing to an early mortgage payoff program.

From paying off high-interest credit cards, to starting your retirement contributions, to getting important insurance policies in place, there are many financial goals that should probably take priority over paying off your mortgage early. You must build a solid financial foundation first.

However, if you’re ready to pay off your mortgage early then this calculator will help you reach your goal. Pay off your mortgage in 15 years, 10 years, 5 years, or whatever amount of time makes sense for you and your budget!

Mortgage Payoff Calculator Terms & Definitions

  • Principal Balance Owed – The remaining amount of money required to pay off your mortgage.
  • Regular Monthly Payment – The required monthly amount you pay toward your mortgage, in this case, including only principal and interest.
  • Number of Years to Pay Off Mortgage – The remaining number of years until you want your mortgage paid off.
  • Principal (Mortgage Loan Amount) – The amount of money you borrowed to buy your home.
  • Annual Interest Rate (APR) – The percentage your lender charges on borrowed money.
  • Mortgage Loan Term – The number of years you are required to pay your mortgage loan.
  • Mortgage Tax Deduction – A deduction you receive at tax time on the interest you pay toward your mortgage.
  • Extra Payment Required – The extra amount of money you’ll need to pay toward your mortgage every month to pay off your mortgage in the amount of time you designated.
  • Interest Savings – How much you’ll save on interest by prepaying your mortgage.

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