Enter what you still owe, your rate and the years left. Add an extra amount each month to see how many years sooner the mortgage is paid off and how much interest you keep.
Paid off in
—
Every extra unit of currency you pay goes straight to the balance. Because interest is charged on the balance, each extra payment also cuts the interest of every month that follows — which is why paying a little more early on saves so much.
Interest this month = balance × rate ÷ 12
The calculator first works out your normal payment from the balance, rate and years left, then replays the loan month by month with the extra amount added until the balance reaches zero.
Paying early earns a guaranteed return equal to your mortgage rate. If you can reliably earn more after tax by investing, and you have an emergency fund, investing can come out ahead. Many people do a bit of both.
Some lenders limit overpayments or charge an early repayment fee, especially on fixed-rate deals. Check your contract before paying extra.