To calculate paying off a mortgage in one go, first determine the total outstanding principal and any remaining interest. Use an amortization schedule or online calculator to find the exact balance. Next, add fees, penalties, or closing costs associated with an early payoff. Compare this total to available savings or assets. If feasible, transfer the lump sum to the mortgage provider, ensuring proper documentation. This eliminates monthly payments and long-term interest, freeing up cash flow for other financial goals.

Paying off a mortgage early reduces interest expenses significantly. For example, a 30-year fixed-rate mortgage at 6% on a $300,000 loan would save approximately $87,000 in interest over the life of the loan if paid off in 10 years (Federal Reserve, 2022). Additionally, eliminating debt lowers financial stress and improves credit scores, as paying off the mortgage shortens the credit utilization ratio. The Consumer Financial Protection Bureau (CFPB) reports that homeowners who prepay mortgages typically build equity 2-3 times faster, accelerating wealth accumulation (CFPB, 2021). However, this strategy may not suit all budgets, as the lump sum often exceeds emergency savings. A 2023 Bankrate survey found that 38% of homeowners regret prepaying mortgages due to lost investment opportunities, highlighting the need for balanced financial planning. Ultimately, paying off a mortgage in one go is a powerful tool for debt elimination but requires careful consideration of personal financial priorities and market conditions.