How fast could you be mortgage-free?
Add a little to each payment, drop in a yearly lump sum or switch to accelerated payments. See how many years and how much interest it takes off.
Rough numbers only. This is a calculator for planning, not an approval or advice. Rates shown are examples you can change. Nothing you type is saved unless you choose to email it to yourself.
| As is | With prepayments | |
|---|---|---|
| Payment | ||
| Paid off in | ||
| Total interest |
- Interest saved
- Extra paid in year 1
Rough numbers for planning only. This isn't an approval, a quote, an offer or advice. Example rates are for the math and aren't rates we're offering. Your lender's policies, your credit and the property change the real answer.
Three steps.
Enter your mortgage today
Balance, rate and the years left on your amortization. Your annual statement has all three.
Add your prepayments
An extra amount each month, a yearly lump sum, or accelerated bi-weekly payments. Mix and match.
Check your privileges
Most mortgages limit how much you can prepay each year without a penalty. Your contract has the numbers.
Worth knowing.
Accelerated payments
Accelerated bi-weekly payments are half your monthly payment every two weeks. Because there are 26 of them a year, you make the equivalent of one extra monthly payment each year, and it all goes to principal.
Prepayment privileges
Your lender sets how much you can add each year, usually as a percentage you can increase your payment by and a lump-sum limit based on your original mortgage. Unused room usually doesn't carry over to the next year.
Renewal is a free window
At the end of your term, you can usually make a lump-sum payment without a penalty. Keeping your payment the same when your rate drops at renewal works as a prepayment too.
Do accelerated bi-weekly payments really save money?
Yes. You make the equivalent of one extra monthly payment a year, which goes straight to principal. Over a full amortization, that can take years off. Regular bi-weekly payments without the acceleration save very little.
How much can I prepay on my mortgage each year?
It depends on your lender and your contract. Most allow you to increase your payment by a set percentage and make a yearly lump sum up to a percentage of the original mortgage. Going over the limit can trigger a penalty.
Is it better to prepay my mortgage or invest?
Prepaying gives you a guaranteed return equal to your mortgage rate. Investing might earn more or less. Many people do some of both, and if you have high-interest debt, paying that off usually comes first.
Can I lower my payment again after increasing it?
Usually not until the end of your term. Lump sums are more flexible because they're one-time, so if you're unsure, a lump sum keeps your options open.
Want the real number?
These are rough numbers. I can run your actual file against real lender criteria, and checking your options won't touch your credit.
Keep running the numbers
Renewal decision
Stay, switch or reset your amortization. Compare the real cost over your term, side by side.
Open the tool Renewal RadarRenewal Radar
Tell me your renewal date once. I'll remind you to compare before your lender's letter shows up.
Open the tool Home equity checkHome equity check
How much of your equity you could access with a refinance or a HELOC, and what it could cost monthly.
Open the tool