Paying off your mortgage ahead of schedule can result in serious long-term savings—think tens of thousands of dollars in interest. It also means you’ll own your home free and clear sooner, giving you more room in your monthly budget and more financial freedom.

Benefits of early repayment

Making extra payments now can open the door to financial possibilities later. Here’s what early repayment can help you achieve: 

• Save on interest: Extra payments reduce your loan balance and the total interest you’ll pay.
•  Improve your credit: Less debt can boost your credit score and financial profile.
• Gain flexibility: Free up future cash for other goals like home upgrades, education or travel.
• Increase borrowing power: Lower debt levels can help you qualify for future loans.
• Enjoy peace of mind: Paying off debt can bring a greater sense of security and control.
• Grow your investments: Reallocate what would’ve been mortgage payments to building wealth.
• Build equity faster: More of your money goes toward ownership, not interest.
• Plan for retirement: Pay off your home and shift focus to saving for the future.

Interest savings over time

Any additional mortgage payment—whether it’s a little extra each month or a lump sum here and there—can significantly reduce the amount of interest you pay over the life of your loan. That’s because extra payments typically go straight toward the principal, lowering the loan balance on which interest is calculated.

The sooner you start, the more you can reduce mortgage interest. Even rounding up your monthly payment or switching to biweekly payments can shave years off your term and save you money on interest. See for yourself—plug your loan details into the calculator and test out different mortgage principal prepayment strategies. Small changes today can yield long-term rewards.

Interest savings in action

Let’s say you have a $300,000 mortgage with a 6% interest rate on a 30-year term. By making one extra monthly payment of $1,798.65 toward your loan principal each year, you could save you $70,923 in interest and shave 5.3 years off your loan. You could do a lot with over $70,000 in savings, right?

An early mortgage payoff calculator is your best friend when it comes to picking the best payoff strategy for your financial needs and goals. It shows you how extra payments—monthly, yearly or one-time—can shorten your loan term and reduce the total interest you’ll pay. Whether you’re making small additional payments or a larger lump sum, the calculator helps you understand the impact on your bottom line.

What you’ll need to enter

Before you begin, have a few mortgage details handy:

• Loan amount
• Interest rate
• Loan term
• Start date

Then, input how much extra you plan to pay and how often—monthly, annually, or as a one-time amount.  The calculator will crunch the numbers to reveal how extra payments can add up in your favor over time.

What the results will show you

The results compare your current loan and your early payoff scenario, so you can see how much faster you could pay off your mortgage and how much you might save in interest. You’ll see:

• Total interest savings
• Time reduced from your loan term
• New estimated payoff date

There’s no one right way to make extra mortgage payments—it’s all about finding what fits your lifestyle and budget. Let’s take a tour of the different strategies you could try out to shorten that payoff timeline and maximize interest savings.

Adjusting payment frequency

Tweaking how often you make payments is one of the simplest ways to chip away at your mortgage without a major budget overhaul. Switching from monthly to biweekly payments, for example, means you’ll make 26 half-payments a year—essentially the equivalent of 13 full payments instead of 12. That one extra payment a year goes straight toward your principal, reducing your balance faster and saving you money on interest over time.

Trying different start dates or amounts

You don’t have to start big or even start right away. The important thing is to start.

Making extra payments early in your loan term can have the most impact, since more of your monthly payment goes toward interest in those first years. But even if you’re years into your mortgage, it’s not too late to make a difference. You can:

• Add a set amount, like $100, to each monthly payment
• Round your monthly payment up to the nearest hundred
• Apply one-time lump sums from bonuses or tax refunds

The Mortgage Payoff Calculator lets you test out different scenarios, so you can build a plan that fits your goals—and helps you become mortgage-free faster.

Explore refinancing options

Wondering whether refinancing or making extra payments will save you more in the long run? The smartest thing you can do is run the numbers—try out our Mortgage Refinance Calculator to see which strategy offers greater savings.

Extra payment adjustments (if applicable)

Will you stick with one extra payment strategy or re-evaluate your approach every now and then? You don’t have to adjust monthly, but it helps to review your financial situation annually to see if you can afford more contributions. A flexible approach—mixing regular small extras with occasional larger payments—can maximize savings while fitting your budget. When you’re ready to make extra payments, talk to your lender first. Some lenders will let you adjust your monthly payment while others require a separate check for additional contributions.