Financial Sim Suite

Mortgage Payoff Calculator

Drag the extra-payment slider to see how much interest you'd save and how many years you'd cut off your loan.

$150
Monthly payment (base)
$2,528.27
Interest saved
$89,462
vs. no extra payment
Time saved
4y 5m
Payoff in 25.6 yrs

Paying an extra $150/month saves you $89,462 in interest and pays off the loan 4 years 5 months sooner — compared to $510,178 in total interest with no extra payment.

How it works

  1. 1

    Enter your loan details

    Home price (or remaining principal), interest rate, and loan term. Canadian users can switch to semi-annual compounding to match how Canadian mortgages are legally calculated.

  2. 2

    Drag the extra payment slider

    Add any extra amount you could realistically pay each month on top of your required payment.

  3. 3

    See the impact instantly

    The calculator rebuilds your full amortization schedule with the extra payment applied straight to principal, showing exactly how much interest and time you'd save.

Frequently asked questions

Does extra payment really go entirely to principal?+

Yes, for standard amortizing mortgages in the US, India, and most countries, any payment above your required monthly payment is applied directly to reduce your principal balance — as long as your lender doesn't charge a prepayment penalty.

Why is there a semi-annual compounding option?+

Canadian mortgages are compounded semi-annually by law, even though payments are made monthly. This produces a slightly different effective monthly rate than the simple annual-rate-divided-by-12 approach used in the US and most other countries.

Should I pay extra on my mortgage or invest the money instead?+

It depends on your mortgage rate vs. your expected investment return, and your tolerance for risk. Paying down debt is a guaranteed, risk-free return equal to your interest rate; investing has higher expected returns but isn't guaranteed. Many people split the difference.

Does this include property tax, insurance, or PMI?+

No — this calculator models principal and interest only. Property tax, homeowner's insurance, and mortgage insurance (PMI), if applicable, are not included and would need to be added on top of the monthly payment shown.