Enter your mortgage and extra payments to see your new payoff date and the interest you save. Try extra monthly, yearly or one-time payments, or switch to biweekly payments, and compare the schedules side by side.
| Item | Original | With extra |
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| Year | Original balance | New balance |
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Know More: How the Mortgage Payoff Calculator Works
Why it matters in 2026. With 30-year mortgage rates around 7% (7.24% in Freddie Mac’s survey for October 29, 2026), every extra dollar of principal you pay saves interest at that rate, a guaranteed, risk-free return (Freddie Mac PMMS).
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How extra payments work
Each mortgage payment covers that month's interest first; the rest reduces your balance. Early in the loan, most of the payment is interest. Any extra amount you pay goes entirely to principal, so:
- your balance falls faster;
- every later payment has less interest and more principal;
- the loan ends years early, and you never pay the interest those years would have cost.
For example, on a $300,000 balance at 6.5% with 25 years left (payment $2,026), paying $200 extra a month saves $68,042 of interest and pays the loan off 4 years and 9 months sooner. Your required payment doesn't change; you just finish earlier.
Tell your lender the extra amount is for principal (most online payment pages have a box for it) and check your statement to see it applied.
Biweekly payments
Paying half your monthly payment every two weeks means 26 half payments a year, or 13 full payments instead of 12. That one extra payment a year saves $59,673 and 4 years 2 months on the example loan.
- Check that your lender applies each half payment when received; some hold it until the second half arrives.
- Avoid third-party biweekly programs that charge setup or per-payment fees.
- You get the same result by adding 1/12 of your payment ($169 on a $2,026 payment) to each monthly payment.
Paying off early vs investing
Prepaying your mortgage earns a guaranteed return equal to your interest rate. Investing the same money might earn more on average, but with risk. Things to weigh:
- Your rate: at 6% to 7%, prepaying is attractive; at 3%, investing usually wins, and high-yield savings may even pay more.
- Get your 401(k) match first and build an emergency fund; money in your house is hard to get back out.
- Pay off higher-rate debt first, such as credit cards and personal loans.
- Taxes: if you itemize, mortgage interest is deductible, which lowers the real return of prepaying slightly; most people now take the standard deduction.
- Peace of mind: owning your home outright before retirement lowers the income you need.
Recast vs prepay
Extra payments shorten your loan but keep the same monthly payment. A recast does the opposite: after a lump-sum payment (often at least $5,000 to $10,000), the lender re-amortizes the lower balance over the remaining term, so your monthly payment drops but the payoff date stays the same. Recasts usually cost $150 to $500 and are available on most conventional loans, but not FHA or VA loans. A recast keeps your rate, unlike a refinance.
Prepaying saves more interest; recasting frees up monthly cash flow.
Examples
$300,000 at 6.5% with 25 years left (payment $2,026); the one-time payment is made after a year:
| Extra | Saved | Sooner |
|---|---|---|
| $100/mo | $38,719 | 2 yrs 8 mo |
| $200/mo | $68,042 | 4 yrs 9 mo |
| $500/mo | $125,588 | 9 yrs 1 mo |
| Biweekly | $59,673 | 4 yrs 2 mo |
| $5,000/yr | $108,212 | 7 yrs 11 mo |
| $20,000 once | $64,702 | 3 yrs 5 mo |
Interest saved on a new 30-year $300,000 loan at 6.5%
Payment $1,896, total interest $382,633 without extra payments
Source: Digicalcy calculation.
Results are estimates, not financial advice. Last reviewed: November 1, 2026.
Mortgage Payoff Calculator FAQs
How much will $100 extra a month save?
On a new 30-year $300,000 mortgage at 6.5%, $100 extra a month saves about $61,000 of interest and pays the loan off 4 years early. On a $300,000 balance with 25 years left, it saves about $38,700 and 2 years 8 months.
What happens if I pay an extra $200 a month on my mortgage?
The extra $200 goes straight to principal, so you pay less interest every month after. On a $300,000 balance at 6.5% with 25 years left, it saves about $68,000 of interest and ends the loan 4 years and 9 months sooner.
Is it better to pay off my mortgage early or invest?
Paying extra earns a guaranteed return equal to your mortgage rate. If your rate is 6% or more, prepaying is competitive with investing; at 3% to 4%, investing usually wins over time. Get your employer's 401(k) match, an emergency fund and pay off higher-rate debt first.
Do biweekly mortgage payments really help?
Yes. 26 half payments a year equal 13 full payments, one extra a year. That cuts about 4 years off a 25-year loan at 6.5%. You can get the same effect by adding 1/12 of your payment each month, without any program fees.
More mortgage and home calculators
- Home Affordability Calculator: how much house you can afford
- Debt-to-Income Calculator: your DTI for a new loan
- Compound Interest Calculator: compare with investing the money
- Refinance Calculator: should you refinance at today's rates