Is paying off my mortgage early always the best move?

Not necessarily — compare your mortgage rate to what you could earn investing that extra money instead. If your mortgage rate is low, investing may produce a better long-term return.

Do I need to tell my lender about extra payments?

Most lenders let you pay extra automatically, but confirm the extra amount is labeled for principal reduction, not applied toward a future payment.

Mortgage Payoff Calculator

See how much sooner you could pay off your mortgage — and how much interest you'd save — by adding extra money to your monthly payment.

Current loan balance

Interest rate

Remaining term

months

Extra monthly payment

New Payoff Time

252 months

108 months sooner

Interest Saved

$79,800.51

Original payment: $1,199.10

How It Works

Extra payments reduce principal faster

Every extra dollar you pay goes entirely toward principal (not interest), which shrinks the balance interest is calculated on for every remaining month — the earlier you add extra payments, the bigger the effect.

The simulation

We simulate your loan month by month with your regular payment plus your extra amount, tracking exactly when the balance reaches zero and how much total interest you actually paid.

Example

On a $200,000 balance at 6% with 360 months remaining, adding just $200 extra per month pays off the loan years early and saves a substantial amount of interest.

Common Mistakes

Not confirming with your lender that extra payments are applied directly to principal — some servicers apply them to the next month's payment instead unless you specify otherwise.
Ignoring prepayment penalties, which some loans (though not most modern mortgages) still carry.

Frequently Asked Questions

Is paying off my mortgage early always the best move?: Not necessarily — compare your mortgage rate to what you could earn investing that extra money instead. If your mortgage rate is low, investing may produce a better long-term return.
Do I need to tell my lender about extra payments?: Most lenders let you pay extra automatically, but confirm the extra amount is labeled for principal reduction, not applied toward a future payment.