Extra Payments Payoff Calculator

Add extra monthly, yearly or one-time payments to see an estimated payoff time and the interest saved.

How to use ↓

Extra payments

Starting values are examples, not current rates or averages. Replace them with yours.

Step 1 Your loan

Decimals are fine, for example 27.5.

Leave blank to calculate it from the numbers above.

Optional. Adds a payoff date.

Step 2 Extra payments

Paid every 12th month.

Step 3 Calculate

How to use

  1. Enter your loan balance, rate and the years left on the loan.
  2. Enter an extra amount each month, each year or once.
  3. Press Calculate to see the new payoff time and interest saved.
  4. Print the comparison, or open the yearly table.

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Paying a mortgage off early

Extra money sent with a payment goes to principal, so the balance falls faster and less interest is charged each month after. The effect builds over time, which is why a modest extra amount early in a long loan can shorten it by years.

Before paying extra, check that your loan has no prepayment penalty and ask your servicer how to mark a payment as principal only. Servicers credit extra payments on different dates, so real savings can differ a little from this estimate.

If you are already some years into the loan, enter the current balance and the years left, and your actual payment if you know it so the schedule matches your statement.

Worked example

A $300,000 loan at 6.5% for 30 years, with an extra $200 a month. The loan is paid off in 23 years 1 month instead of 30 years, and the interest falls from $382,628.90 to $279,182.44: an estimated $103,446.46 saved.

A real servicer may credit extra payments on a different date, so treat the figure as an estimate.

FAQ

Do extra payments shorten the loan or lower the payment?

They shorten the loan: the payment stays the same and the loan ends sooner. Lowering the payment needs a recast, which is a separate arrangement with your servicer.

How do I enter a loan I have already paid on?

Enter the balance you owe now, the rate and the years left. Add the payment from your statement so the schedule matches.

How accurate is the interest saved?

It is an estimate. It assumes on-time payments, extra payments applied in the month you pay them, and a fixed rate.

Can I add more than one kind of extra payment?

Yes. Monthly, yearly and one-time amounts can be used together.