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Mortgage payoff calculator
Extra principal is the highest-guaranteed-return move most homeowners have, because every dollar skips all the future interest it would have carried. See exactly how much a little extra each month saves — in years and in dollars.
You'd save
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Assumes the extra goes to principal every month. Confirm your lender has no prepayment penalty (conforming loans don't).
Why extra principal works so hard
Interest is charged on your balance, so knocking the balance down early cancels every future interest charge that principal would have generated. That compounding-in-reverse is why $200 a month, applied for years, can erase far more than $200 × the number of months from your total cost — and why the effect is biggest when you start early in the loan.
One caution for Michigan borrowers: make sure extra payments are applied to principal, not prepaid toward next month's payment — tell your servicer explicitly. To weigh paying down versus refinancing, use the refinance calculator, and see the full schedule in the amortization calculator.
Frequently asked questions
How much does paying extra on my mortgage save?
A lot, because extra principal skips all the future interest that dollar would have accrued. On a $250,000 loan at today's rates, an extra $200 a month can cut roughly 6–8 years off a 30-year term and save tens of thousands in interest. Enter your numbers above to see your exact result.
Is it better to pay extra monthly or make biweekly payments?
Biweekly payments (half your payment every two weeks) add up to one extra full payment a year, which shaves a few years off a 30-year loan. A fixed extra amount each month usually saves more if the amount is larger than that. Both work — the key is that extra money goes to principal.
Should I pay off my mortgage early or invest?
It depends on your rate versus expected investment returns and your risk tolerance. Paying off a 7% mortgage is a guaranteed 7% return; investing might beat it but isn't guaranteed. Many Michigan homeowners split the difference — some extra principal, some invested — and keep an emergency fund either way.