Mortgage Payoff Calculator
See how extra monthly payments or biweekly schedules can save you tens of thousands in interest and take years off your mortgage. Enter your loan details to compare payoff strategies.
Mortgage Details
Standard Payoff
Payoff Strategies Compared
| Strategy | Monthly | Payoff | Total Interest | Months Saved | Interest Saved |
|---|---|---|---|---|---|
| Standard | $1,836 | 27y 0m | $314,719 | — | — |
| Biweekly | $918 x26 | 22y 3m | $249,513 | 57 | $65,207 |
| Extra $300/mo | $2,136 | 19y 2m | $209,632 | 94 | $105,088 |
Biweekly = 26 half-payments per year, equivalent to one extra monthly payment annually ($1,836/yr extra).
Amortization Schedule (Yearly)Showing with extra payments
| Year | Balance | Interest | Principal | End Balance | Cumulative Interest |
|---|---|---|---|---|---|
| 1 | $280,000 | $17,975 | $7,652 | $272,348 | $17,975 |
| 2 | $272,348 | $17,462 | $8,164 | $264,184 | $35,437 |
| 3 | $264,184 | $16,915 | $8,711 | $255,472 | $52,352 |
| 4 | $255,472 | $16,332 | $9,295 | $246,178 | $68,684 |
| 5 | $246,178 | $15,710 | $9,917 | $236,261 | $84,394 |
| 6 | $236,261 | $15,045 | $10,581 | $225,680 | $99,439 |
| 7 | $225,680 | $14,337 | $11,290 | $214,390 | $113,776 |
| 8 | $214,390 | $13,581 | $12,046 | $202,344 | $127,357 |
| 9 | $202,344 | $12,774 | $12,853 | $189,491 | $140,131 |
| 10 | $189,491 | $11,913 | $13,714 | $175,777 | $152,044 |
| 11 | $175,777 | $10,995 | $14,632 | $161,146 | $163,039 |
| 12 | $161,146 | $10,015 | $15,612 | $145,534 | $173,053 |
| 13 | $145,534 | $8,969 | $16,657 | $128,876 | $182,023 |
| 14 | $128,876 | $7,854 | $17,773 | $111,103 | $189,876 |
| 15 | $111,103 | $6,663 | $18,963 | $92,140 | $196,540 |
| 16 | $92,140 | $5,393 | $20,233 | $71,907 | $201,933 |
| 17 | $71,907 | $4,038 | $21,588 | $50,318 | $205,971 |
| 18 | $50,318 | $2,593 | $23,034 | $27,284 | $208,564 |
| 19 | $27,284 | $1,050 | $24,577 | $2,707 | $209,614 |
| 20 | $2,707 | $18 | $2,707 | $0 | $209,632 |
Mortgage Payoff Strategies
How amortization works: In the early years of a mortgage, most of your payment goes toward interest. Over time, the split shifts and more goes toward principal. Extra payments accelerate this shift by reducing the principal balance that accrues interest.
Biweekly payments: Instead of 12 monthly payments, you make 26 half-payments per year—equivalent to 13 monthly payments. That one extra payment per year can shave 4–6 years off a 30-year mortgage. Some servicers offer this directly; otherwise, you can simply add 1/12 of your payment as extra principal each month.
Recasting vs. refinancing: A recast keeps your existing loan but re-amortizes the balance after a lump-sum principal payment, lowering your monthly payment. It costs $150–$500 (no closing costs). Refinancing replaces the entire loan—useful when rates drop significantly, but involves closing costs of 2–5% of the loan amount.
PMI and the 80% LTV Threshold
If you put less than 20% down, you’re paying Private Mortgage Insurance (PMI), typically 0.5–1% of the loan amount per year. Once your loan-to-value ratio drops below 80% (you have 20% equity), you can request PMI removal. Extra payments reach that point sooner, retiring the PMI premium on top of the interest they save.
Extra Payments vs. Investing: the Crossover
A mortgage rate below the expected investment return means the extra dollar earns more invested than it saves paid. A 3.5% mortgage costs less than long-term stock market returns of 7–10%. The mortgage return is guaranteed; the market return is not.
A dollar saves interest at the rate of whatever debt it retires—20% on a credit card, 5% on a mortgage. Mortgage principal is illiquid: recovering it takes a refinance or HELOC. The standard emergency fund is 3–6 months of expenses.