Mortgage Payoff Calculator

On a 30-year $300,000 mortgage at 6.5%, an extra $100/month saves roughly $30,000–50,000 in interest and cuts ~4–5 years off the loan. The earlier in the loan you start paying extra, the greater the savings because interest is front-loaded.

If your mortgage rate is 6.5% and you can consistently earn 7–10% in the stock market, investing may come out ahead mathematically. However, paying off debt is risk-free and emotionally valuable. Many financial experts suggest doing both: invest enough to get any 401k match, then split extra cash between investments and mortgage.

Always specify to your lender that extra payments should apply to principal, not interest or future payments. Some servicers apply extra amounts to advance your next payment date, which doesn't reduce interest as efficiently as principal reduction.

Instead of 12 monthly payments, you make 26 bi-weekly half-payments — equivalent to 13 full payments per year. The extra payment reduces principal and can cut 4–6 years off a 30-year mortgage without feeling like a large sacrifice.