Calculate how much you can save and how quickly you can pay off your mortgage by making extra payments.
Benefits of Early Payoff
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Paying off a mortgage ahead of schedule is a financial goal for many, and for good reason. By making extra payments, you not only get rid of debt faster, but you also save a significant amount in interest. This frees up resources for other investments or to increase your quality of life. Even small additional amounts can have a surprising impact over the years, thanks to the power of compound interest working in your favor.
Get your questions answered about early mortgage payoff.
Each extra payment goes directly to the principal balance of your debt. This reduces the calculation base for future interest, causing you to pay less interest over time and pay off the loan faster.
You can make a one-time payment, add a fixed amount to your monthly installment, or make an extra annual payment (such as the 13th salary). Any additional amount, however small, makes a difference in the long run.
It's a personal decision. If your mortgage interest rate is higher than the expected return on a safe investment, paying off may be more advantageous. Also consider the security of being debt-free.
No, this calculator focuses only on interest savings and payoff time. Consult your contract and a financial professional to understand any taxes or fees associated with early payoff.