Mortgage Payoff Calculator - Calculate Interest Savings from Current Principal Balance
Mortgage Payoff Calculator
Standard Amortization Schedule
If Accelerated Repayment
Monthly Amortization Schedule
| Baseline Amortization Schedule | Amortization Schedule with Prepayment | ||||||
|---|---|---|---|---|---|---|---|
| Month | Date | Interest | Principal | End balance | Interest | Principal | End balance |
Is It a Good Idea to Prepay a Mortgage?
Prepaying is often beneficial if you value reducing debt and interest expense, have no higher-return investments or urgent needs, and have an emergency fund in place. It’s best to evaluate your interest rate, investment opportunities, tax situation, and financial goals or talk to a financial advisor.
Is It Worth Paying an Extra $800 a Month on Your Mortgage?
Paying an extra $800 monthly can save you a ton of money.
If you have a $100k principal balance with a $1,500 monthly payment at 6% interest. You'd save roughly $8,905.45 in interest and knock off about 2 years and 8 months from your loan. Not bad at all!
How Many Years Does One Extra Payment Take off a 30-year Mortgage?
Making one extra payment per year can typically reduce a 30-year mortgage by about 4 to 6 years.
Example:
- Loan amount: $300,000
- Interest rate: 5% (fixed)
- Monthly payment: $1,610.46
Scenario 1: Regular payments
Pay $1,610.46 every month for 30 years. The loan is fully paid off at the end of 30 years.
Scenario 2: One extra payment per year
In addition to the regular monthly payments, you make one extra payment of $1,610.46 each year (effectively 13 payments per year instead of 12).
Result:
This extra payment can reduce the loan term by approximately 4 years 8 months, meaning you'd pay off the mortgage in 25 years 5 months instead of 30. You also save $49,048.32 in interest over the life of the loan.
What Happens if I Pay an Extra $100 a Month on My Mortgage Principal?
Paying an extra $100 a month toward your mortgage principal reduces your loan balance faster, shortens the loan term, and saves you money on interest over time.
Example:
- Loan amount: $200,000
- Interest rate: 4% (fixed)
- Loan term: 30 years
- Regular monthly payment: about 954.83
If you pay an extra $100 each month ($1,054.83 total), you could:
Pay off your mortgage about 5 years earlier
Save $26,855 in interest over the life of the loan.
Even small extra payments speed up payoff and reduce total interest.
Why Calculate from Current Principal Balance?
Using your current unpaid principal balance provides the most accurate prepayment calculations because:
- Precise Interest Calculations: Interest is calculated on your remaining principal balance
- Accurate Time Savings: Shows exactly how much time you can cut from your loan
- Real Interest Savings: Calculates actual interest you'll avoid paying
- Current Position Focus: Plans from where you are now, not where you started
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