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Mortgage Payoff Goal

What does it take to be mortgage-free by your target date?

Enter what you owe on your mortgage, its rate, how long is left, and when you’d like it paid off. We’ll show the extra monthly amount that gets you there and the interest it saves.

  1. Your payment is set to finish on schedule

    Your regular payment is calculated to pay the loan off exactly at the end of its term. Part of it covers that month’s interest and the rest pays down the balance (the principal).

  2. Extra money goes straight to principal

    Anything you pay beyond the regular amount reduces the balance directly. Less balance means less interest next month, so the loan ends sooner. That’s working in your favor.

  3. We work backward from your goal

    We find the payment that would pay off your balance in exactly the time you choose, then subtract your current payment. The difference is the extra you’d add each month.
Your balance, rate, and payments remaining are on your monthly mortgage statement. If it doesn’t list the months left, start from 360 for a 30-year loan and subtract the payments you’ve made.
Your loan today

From your latest mortgage statement. Use the balance you owe now, not the original loan amount.

$
%
Your goal
years

Pay this much extra each month

$686

Add $686/month to your regular $2,363 loan payment (for a total of $3,049/month) and you’ll be mortgage-free in 15 years, saving $160,170 in interest.

Your current loan payment

$2,363

principal + interest, done in 25yr 0mo

Payment to hit your goal

$3,049

to finish in 15 yrs

Extra needed each month

$686

on top of your regular payment

Interest saved

$160,170

$358,968 vs $198,798 total

Time saved

10yr 0mo

vs your current schedule

What this means

Paying only the regular $2,363, you’d finish in 25 yr and pay $358,968 in interest along the way. Adding $686 a month shortens that to 15 yr, and total interest drops to $198,798. Every extra dollar cuts the balance right away, so it stops costing you 6.5% interest from then on.

These figures cover principal and interest only. If your monthly bill also includes property tax and insurance (through escrow), add the extra on top of that full amount. Unlike refinancing to a shorter loan, extra payments are voluntary, so you can return to the regular payment if money gets tight. Check that your loan has no prepayment penalty first.

What if you paid $100 or $500 extra instead?

+$100/mo extra: paid off in 22 yr 8 mo (2 yr 4 mo sooner than your current schedule)

+$500/mo extra: paid off in 16 yr 9 mo (8 yr 3 mo sooner than your current schedule)

Paying extra earns a guaranteed return equal to your mortgage rate. Compare that with what you could earn investing the money instead. The payoff vs invest calculator does that comparison directly. Since the , most borrowers take the instead of itemizing, so the mortgage rate is also the after-tax return. That compares well with bonds and is a closer call against stocks.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

Short definitions of the terms this calculator uses.

Principal balance
What you still owe on the loan today, not counting future interest. It’s on your monthly mortgage statement.
Principal and interest
The loan part of your monthly payment. Principal pays down what you borrowed; interest is the lender’s charge for lending it. Property tax and insurance are separate.
Extra principal payment
Money you pay beyond the regular amount. It reduces the balance right away, so less interest builds up and the loan ends sooner.
Amortization
How a loan is paid off with equal monthly payments. Early payments are mostly interest, so paying down principal early saves the most.
Escrow
Money your servicer collects with your loan payment to cover property tax and insurance. Extra payments don’t change it. More
Prepayment penalty
A fee some loans charge for paying off the balance early. Most home loans today don’t have one, but check your loan documents before paying extra.
Standard deduction
A flat amount that lowers your taxable income without listing expenses. Most homeowners take it, which means mortgage interest gives them no tax break.
TCJA
The 2017 Tax Cuts and Jobs Act. It roughly doubled the standard deduction, so far fewer homeowners itemize mortgage interest. More

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