Mortgage Payoff Calculator – Save Years with Extra Payments
Calculate how much time and interest you save by making extra mortgage principal payments.
🏠 Finance📐 Months saved = n - (-ln(1-P*r/M') / ln(1+r))
Current loan balance ($)
Interest rate (%)
Remaining term (years)
Extra monthly payment ($)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Mortgage Payoff Calculator – Save Years with Extra Payments | Months saved = n - (-ln(1-P*r/M') / ln(1+r)) | months saved |
Step-by-Step Examples
Example 1
$280K, 6.5%, 25yr, +$200/mo
Extra $200/month.
- Time saved: ~6 years | Interest saved: ~$73,000
✓ Save 6 years / $73K
Example 2
$200K, 7%, 20yr, +$100/mo
Extra $100/month.
- Save ~2.5 years and ~$25,000 in interest
✓ Save 2.5 years
Example 3
+$500/mo
$280K, 6.5%, 25yr.
- Save 10+ years and $130K+ in interest
✓ Save 10 years
Real-World Applications
Homeowners
See extra payment impact on mortgage.
Refi Shoppers
Compare refinancing vs extra payments.
Planners
Model mortgage payoff strategy.
Banks
Show the value of extra payments.
Common Mistakes to Avoid
⚠️
Making extra payments occasionally
Consistency is key. Regular $100/month beats sporadic lump sums.
⚠️
Not specifying PRINCIPAL ONLY
Always designate extra payment as PRINCIPAL ONLY, or servicer may apply it as an advance payment.
Frequently Asked Questions
Extra payment vs investing? ▾
If mortgage is 6.5% and stocks return 7%+, investing may win mathematically. Paying down mortgage is a guaranteed return. Personal preference matters.
How to make extra payments? ▾
Specify PRINCIPAL ONLY online or by check. Or pay biweekly (26 half-payments = 13 full payments per year).
Refi vs extra payments? ▾
Rate drops 1%+: usually refinance. Rate drop under 1%: extra payments may be simpler and nearly as effective.