Understanding the mortgage payoff calculator
Paying a mortgage off early is a guaranteed, tax-free return equal to your loan's interest rate: every dollar of principal you retire stops accruing interest at that rate for the remaining life of the loan. Whether that beats investing the same dollars depends on your rate, your alternatives, and your appetite for risk but the savings themselves are certain.
Before accelerating payments, confirm your loan has no prepayment penalty and tell your servicer that extra amounts should be applied to principal, not held toward the next payment. Also weigh the trade-off: money sent to the mortgage is illiquid, so keep an emergency fund intact first.
Results are estimates for education only and are not financial advice.