15 Year Mortgage Rates Loan Calculator

Mortgage Payoff Calculator

See how much time and interest you can save by making extra monthly payments.

Your Savings Summary

Total Interest Saved $0.00

Time Saved 0 Months

function calculateMortgagePayoff() { var balance = parseFloat(document.getElementById('currentBalance').value); var annualRate = parseFloat(document.getElementById('interestRate').value); var scheduledPayment = parseFloat(document.getElementById('monthlyPayment').value); var extra = parseFloat(document.getElementById('extraPayment').value) || 0; if (isNaN(balance) || isNaN(annualRate) || isNaN(scheduledPayment) || balance <= 0 || annualRate <= 0 || scheduledPayment <= 0) { alert("Please enter valid positive numbers for balance, rate, and payment."); return; } var monthlyRate = (annualRate / 100) / 12; if (scheduledPayment 0.01 && originalMonths 0.01 && accelMonths 0) { timeText += yearsSaved + " Year" + (yearsSaved > 1 ? "s" : ""); if (remainingMonthsSaved > 0) timeText += " and " + remainingMonthsSaved + " Month" + (remainingMonthsSaved > 1 ? "s" : ""); } else { timeText = monthsSaved + " Month" + (monthsSaved > 1 ? "s" : ""); } document.getElementById('timeSaved').innerText = timeText; document.getElementById('summaryText').innerHTML = "By contributing an extra $" + extra.toLocaleString() + " per month, you will pay off your mortgage " + timeText + " sooner and save a total of $" + interestSaved.toLocaleString(undefined, {maximumFractionDigits: 0}) + " in interest charges over the life of the loan."; document.getElementById('payoffResult').style.display = 'block'; }

Why Use a Mortgage Payoff Calculator?

A mortgage is likely the largest financial obligation you will ever have. While standard 15-year or 30-year terms are the norm, staying on the bank's schedule is often the most expensive way to borrow money. Using a Mortgage Payoff Calculator allows you to visualize the dramatic impact that even small extra payments can have on your long-term wealth.

The Power of Principal Reduction

In the early years of a mortgage, the majority of your monthly payment goes toward interest rather than principal. When you make an "extra payment," 100% of those funds are applied directly to the principal balance. This reduces the base amount upon which your interest is calculated every single month thereafter, creating a compounding effect that works in your favor instead of the bank's.

Real-World Example: The $300,000 Scenario

Let's look at how extra payments change the math on a typical home loan:

• Original Loan: $300,000 at 6.5% interest
• Standard Payment: $1,896.20 per month
• Extra Payment: $300 per month
• Result: You save $112,410 in interest and pay off the house 7 years and 10 months early.

Strategies for Faster Payoff

If you want to accelerate your journey to a debt-free home, consider these proven methods:

1. The Monthly Add-On: Like the calculator above suggests, adding a fixed amount to your check every month is the most consistent way to save.
2. Bi-Weekly Payments: By paying half your mortgage every two weeks, you end up making 26 half-payments, which equals 13 full payments a year. This simple trick can shave years off a 30-year term.
3. Lump Sum Windfalls: Apply tax refunds, work bonuses, or inheritance directly to the principal to see an immediate drop in your interest trajectory.
4. Recasting: If you make a large lump sum payment, some lenders allow you to "recast" the loan, which keeps the new lower balance but lowers your required monthly payment, giving you more cash flow flexibility.

Should You Pay Off Your Mortgage Early?

While saving interest is great, it's important to consider your "opportunity cost." If your mortgage interest rate is 3% and the stock market is returning 7%, you might build more wealth by investing your extra cash. However, for many, the peace of mind of owning a home outright outweighs the potential mathematical gain of investing. Use this calculator to see the exact "guaranteed return" you get by paying down your debt today.