Mortgage Payoff Calculator

The real cost of paying only the minimum

On a $320,000 balance at 6.5% with a payment of $2,023 a month, you need the full 30 years and pay about $408,143 in interest — more than the house loan itself. Now add just $200 a month to principal: the loan ends in about 23 years 11 months and total interest falls to roughly $298,991. That is $109,152 saved and 73 months of payments eliminated — from an extra amount many households can find by trimming two subscriptions and a weekly takeout.

Four proven ways to pay off a mortgage early

1. Round up every payment. Pay $2,100 instead of $2,023. Painless, automatic, effective.
2. One extra payment a year. A 13th payment annually (or its monthly equivalent, 1/12 extra each month) cuts about 4–6 years off a 30-year loan.
3. Biweekly half-payments. 26 half-payments equal 13 full ones — see the biweekly calculator.
4. Throw windfalls at principal. Tax refunds, bonuses and raises applied as lump sums — use the lump-sum fields above to model them.

Before you pay extra, check these three things

• Prepayment penalties are rare on modern US mortgages but check your note.
• Higher-interest debt first. Credit cards at 22% beat a 6.5% mortgage every time.
• Emergency fund and retirement match. Keep 3–6 months of expenses liquid, and never skip an employer's 401(k) match to prepay a mortgage.

Tell your servicer in writing to apply extra amounts to principal, and confirm on your next statement. For the month-by-month picture, open the amortization calculator, and read our strategy guide on how to pay off your mortgage early.