See how an extra monthly principal payment changes your mortgage payoff date, total interest and interest savings.
UNDERSTAND THE ANSWER
How is this calculated?
The calculator first finds the scheduled principal-and-interest payment from the current balance, fixed rate and remaining term. It adds the extra monthly amount, solves the shorter payoff period and compares estimated interest with the original schedule.
Default example: a $280,000 balance at 6.25% with 27 years remaining has a regular payment near $1,791. Adding $250 monthly shortens the modeled payoff to about 20 years 2 months and saves about $86,371 of interest.
Tax and location note
This is a general mortgage-planning estimate, not a lender payoff statement. Currency follows your selected setting. Daily interest, escrow, fees, recasting, prepayment penalties and principal-application rules vary by lender and jurisdiction; confirm instructions with your servicer.
Assumptions, interpretation and common mistakes
Calculation assumptions
The rate stays fixed and scheduled payments are made monthly and on time.
Every extra payment is applied immediately to principal without a fee or penalty.
No refinance, recast, missed payment, escrow change or additional borrowing occurs.
How to interpret the result
New payoff time is the estimated period until the principal balance reaches zero.
Interest saved compares the accelerated schedule with the original remaining schedule.
Keep adequate emergency savings before committing cash to an irreversible principal payment.
Common mistakes to avoid
Do not send extra money without confirming that it is applied to principal.
Do not assume extra principal automatically lowers the required monthly payment without a recast.
Do not use an old balance, rate or remaining term when requesting a current payoff plan.