Pay Off Your Mortgage Faster
Compare every payoff strategy in one place: extra monthly or annual payments, lump sums, true biweekly payments, and the free DIY alternative — plus whether you'd be better off investing instead.
Last updated October 18, 2026
How our math works
- Fixed-rate loan of $360,000 at 6.75% interest for 30 years, fully amortizing
- Invest-instead comparison assumes a 7% annual return, which is not guaranteed
- Rates shown are interest rates used for estimation only — not APRs and not offers. APR reflects fees and other loan costs and may differ from the interest rate shown.
My scenario
Enter income, debts, price, and rate once. Every calculator pre-fills.
Current Loan
$
%
Extra Payments
$
Added to principal each month
$
One-time extra payment each year
$
A one-time principal payment (bonus, inheritance, etc.)
Investment Alternative
%
If you invested extra payments instead
Interest Saved
$153,223
Pay off 8.3 years early
$2,335
$2,635
99
8.3 years6.75%
Guaranteed (your loan rate)Every Payoff Strategy Compared
Total interest and payoff time for each approach
Regular
Total Interest
$480,583
Payoff In
30 yrs
Your Extra-Payment Plan
Total Interest
$327,361
Payoff In
21.8 yrs
True Biweekly
Total Interest
$366,170
Payoff In
23.9 yrs
DIY 13th Payment
Total Interest
$367,017
Payoff In
24 yrs
Regular
$480,583
Your Extra-Payment Plan
$327,361
True Biweekly
$366,170
DIY 13th Payment
$367,017
The Truth About Biweekly Programs
You don't need to pay for this
True Biweekly (26/year)
$114,413 saved
$1,167 every 2 weeks pays off in 23.9 years — 6.1 years early.
Free DIY Alternative
+$195/month
Add 1/12 of your payment to principal each month — identical result, no enrollment fees.
Loan Balance Over Time
How quickly you build equity with your payoff plan
Loan balance starts at $360,000 and is fully paid off by year 30.
30 years
21.8 years
Prepay vs Invest
Net worth at year 30 under each strategy, with identical monthly spending
Prepay Mortgage
$352,339
Portfolio at year 30: loan paid off in 21.8 years, then the full $2,635/month payment is invested at 7%
Invest Instead
$365,991
Portfolio at year 30: extra payments invested at 7% while the loan runs its full term
Key Insights
What these numbers mean for you
Analysis
Making extra payments saves you $153,223 in interest and pays off your loan 8.3 years earlier.
Analysis
Every extra dollar you put toward principal earns a guaranteed return equal to your mortgage rate: 6.75%.
Analysis
True biweekly payments ($1,167 every 2 weeks) save $114,413 and pay off 6.1 years early — the same as adding $195/month yourself, free of charge.
Analysis
⚠️ Watch out for "fake" biweekly programs: some services charge ~$400/year but only forward 24 half-payments (identical to monthly) — all fee, no benefit. DIY by adding 1/12 of your payment to principal each month.
Analysis
⚠️ Servicer limits: Many servicers will not accept half-payments or a true biweekly schedule. Partial payments can be rejected or held until a full monthly amount arrives — confirm before you enroll.
Analysis
Fair comparison at year 30: investing the extra at 7% grows to $365,991, while prepaying (then investing the freed-up payment of $2,635/month after payoff) reaches $352,339 - investing comes out $13,652 ahead, but that edge depends on actually earning 7% every year.
Analysis
Your mortgage rate (6.75%) is lower than your assumed investment return (7%), so investing has the mathematical edge - but the 6.75% from prepaying is guaranteed, while investment returns are not.
The Bottom Line
Your payoff plan saves $153,223 in interest and 8.3 years of payments. A free DIY biweekly strategy (add $195/month) saves $113,566 and 6.0 years. Every extra dollar toward principal earns a guaranteed 6.75% return — and never pay a third party for a biweekly program.
Here are the exact formulas behind your numbers. No black boxes — just math.
Extra Payment Impact
Base Monthly Payment
With Extra Payments
Interest Saved
Time Saved
Effective Return
Biweekly Payment Math
Biweekly Payment
Extra Payment Per Year
DIY Equivalent
Biweekly Interest Saved
Prepay vs Invest
Guaranteed Return
Net worth at original term
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Frequently Asked Questions
Every extra dollar goes straight to principal, eliminating all future interest on it. For example, $200/month extra on a $360,000 loan at 6.75% saves roughly $90,000+ in interest and pays the loan off years early. Exact figures depend on your balance, rate, and when you start.
This calculator compares both paths with identical monthly cash outflow and measures net worth at the original term. After early payoff, the prepay path invests the freed-up payment. The guaranteed return on prepaying is your mortgage rate — not interest saved divided by extra paid.
Paying half your monthly payment every two weeks produces 26 half-payments — 13 full payments — per year. That extra annual payment goes to principal, typically cutting 4-6 years and tens of thousands in interest from a 30-year loan. You can replicate it free by adding 1/12 of your payment as extra principal each month.
Usually not. Lender or third-party biweekly programs often charge enrollment and transaction fees for a result you can replicate free. Many "fake" programs only forward 24 half-payments — identical to monthly — so you pay a fee for no benefit.
Most conforming U.S. mortgages originated after 2014 have no prepayment penalty, but a small share of loans do within the first 3 years. Check your loan estimate or note, or ask your servicer before starting an aggressive payoff plan.
Often no — many programs hold the first half-payment until the second arrives, then post one monthly payment, which forfeits some of the timing benefit. The savings mostly come from the 13th payment, not the timing, but it is worth confirming how your servicer posts funds.
Not always. Some servicers reject half-payments or will not post extra funds until a full monthly amount is in hand, so a "true" 26-payment schedule is not available. If that is your servicer, add 1/12 of the payment as extra principal each month instead — that DIY method is accepted on almost every loan.