Interest Saved
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Years Saved
0
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What is a Mortgage Payoff Calculator?
A Mortgage Payoff Calculator helps you visualize how making extra payments can drastically reduce the amount of interest you pay over the life of your loan. By adding extra monthly or lump-sum payments to your principal, you can shorten your amortization period by years.
How to Use the Calculator
Input your original mortgage principal, interest rate, and remaining years. Then, experiment with adding extra monthly payments. The calculator will instantly show you how much interest you save and how many years you shave off your mortgage.
Frequently Asked Questions
Should I pay off my mortgage early or invest?
This is a common debate. Mathematically, if you expect your investments to yield a higher after-tax return than your mortgage interest rate, investing makes more sense. However, paying off a mortgage provides a guaranteed, risk-free return and psychological peace of mind.
What happens when I make an extra payment?
In Canada, extra payments typically go directly toward the principal amount owed, completely bypassing interest. Because interest is calculated on your outstanding principal, reducing the principal immediately lowers your interest charges for the rest of the loan.