Mortgage Payoff Calculator
See how extra monthly, yearly, or one-time payments can pay off your mortgage sooner and cut the interest you pay. Every amount is calculated to the cent.
Your payoff result
You could pay off your mortgage 6 years 11 months sooner and save $103,450.19 in interest.
- Debt-free in
- 23 years 1 month
- Time saved
- 6 years 11 months
- Interest saved
- $103,450.19
| Measure | Minimum payments | With extra payments |
|---|---|---|
| Time to pay off | 30 years | 23 years 1 month |
| Total interest | $382,636.71 | $279,186.52 |
| Total paid | $682,636.71 | $579,186.52 |
- Monthly payment (principal and interest)
- $1,896.20
- Monthly payment with extra
- $2,096.20
- Balance today
- $300,000.00
- Time left on the loan
- 30 yr
Balance over time
Payoff schedule with extra payments
| Period | Payment | Extra | Principal | Interest | Balance |
|---|---|---|---|---|---|
| Year 1 | $22,754.40 | $2,400.00 | $5,825.93 | $19,328.47 | $294,174.07 |
| Year 2 | $22,754.40 | $2,400.00 | $6,216.10 | $18,938.30 | $287,957.97 |
| Year 3 | $22,754.40 | $2,400.00 | $6,632.39 | $18,522.01 | $281,325.58 |
| Year 4 | $22,754.40 | $2,400.00 | $7,076.58 | $18,077.82 | $274,249.00 |
| Year 5 | $22,754.40 | $2,400.00 | $7,550.50 | $17,603.90 | $266,698.50 |
| Year 6 | $22,754.40 | $2,400.00 | $8,056.19 | $17,098.21 | $258,642.31 |
| Year 7 | $22,754.40 | $2,400.00 | $8,595.72 | $16,558.68 | $250,046.59 |
| Year 8 | $22,754.40 | $2,400.00 | $9,171.41 | $15,982.99 | $240,875.18 |
| Year 9 | $22,754.40 | $2,400.00 | $9,785.64 | $15,368.76 | $231,089.54 |
| Year 10 | $22,754.40 | $2,400.00 | $10,441.00 | $14,713.40 | $220,648.54 |
| Year 11 | $22,754.40 | $2,400.00 | $11,140.23 | $14,014.17 | $209,508.31 |
| Year 12 | $22,754.40 | $2,400.00 | $11,886.31 | $13,268.09 | $197,622.00 |
| Year 13 | $22,754.40 | $2,400.00 | $12,682.38 | $12,472.02 | $184,939.62 |
| Year 14 | $22,754.40 | $2,400.00 | $13,531.73 | $11,622.67 | $171,407.89 |
| Year 15 | $22,754.40 | $2,400.00 | $14,437.99 | $10,716.41 | $156,969.90 |
| Year 16 | $22,754.40 | $2,400.00 | $15,404.92 | $9,749.48 | $141,564.98 |
| Year 17 | $22,754.40 | $2,400.00 | $16,436.62 | $8,717.78 | $125,128.36 |
| Year 18 | $22,754.40 | $2,400.00 | $17,537.41 | $7,616.99 | $107,590.95 |
| Year 19 | $22,754.40 | $2,400.00 | $18,711.91 | $6,442.49 | $88,879.04 |
| Year 20 | $22,754.40 | $2,400.00 | $19,965.08 | $5,189.32 | $68,913.96 |
| Year 21 | $22,754.40 | $2,400.00 | $21,302.20 | $3,852.20 | $47,611.76 |
| Year 22 | $22,754.40 | $2,400.00 | $22,728.84 | $2,425.56 | $24,882.92 |
| Year 23 | $22,754.40 | $2,400.00 | $24,251.02 | $903.38 | $631.90 |
| Year 24 | $635.32 | $0.00 | $631.90 | $3.42 | $0.00 |
Principal includes your extra payments. Interest is rounded to the cent each month.
How the mortgage payoff calculator works
A mortgage payoff calculator shows what happens to your loan when you pay more than the required amount. Enter your loan details and any extra payments, and the calculator compares two schedules side by side: one that follows your regular payments and one that includes your extra payments. The difference is the time and interest you could save.
How to use it
- Choose Original loan if you know the loan amount, rate, and term. Enter how long you have already been paying, or 0 for a new loan. ChooseCurrent balance if you know what you owe now and how long is left.
- Enter your interest rate. Only the principal and interest part of your payment is used.
- Add extra payments: an amount every month, an amount once a year, a one-time lump sum, or any mix of the three.
- Read the results: your new payoff time, the time saved, the interest saved, and a full payment schedule you can download as a CSV file.
Why extra payments save so much interest
Each month, your lender charges interest on the balance you still owe. In the early years the balance is large, so most of each payment goes to interest and only a small part reduces the loan. An extra payment goes straight to principal. That lowers the balance immediately, so every later month is charged less interest, and a bigger share of your regular payment goes to principal. The effect compounds over the life of the loan.
Because the benefit builds over time, extra payments made early in the loan save the most. The same amount paid near the end of the loan saves much less.
Example: $300,000 at 6.5% for 30 years
With regular payments of $1,896.20 a month, this loan takes30 years to repay and costs$382,636.71 in total interest. Here is what an extra monthly payment changes:
| Extra each month | New payoff time | Time saved | Interest saved |
|---|---|---|---|
| $100 | 26 years | 4 years | $60,995.81 |
| $200 | 23 years 1 month | 6 years 11 months | $103,450.19 |
| $300 | 20 years 10 months | 9 years 2 months | $135,117.28 |
| $500 | 17 years 6 months | 12 years 6 months | $179,761.68 |
These figures come from the same calculation used above. Your own numbers will differ with your loan amount, rate, term, and how long you have already paid.
Formulas used
Monthly payment = P × r ÷ (1 − (1 + r)−n)Monthly interest = Balance × rNew balance = Balance − (Payment − Interest) − Extra payment
Here P is the loan amount, r is the interest rate divided by 12 (as a decimal), and n is the number of monthly payments. The calculator works in whole cents and rounds the interest each month, as most lenders do. The last payment is adjusted to clear the balance exactly.
Ways to pay off your mortgage faster
- Pay extra every month. Even a small, steady amount adds up. Try the calculator with a few different amounts.
- Make one extra payment a year. A work bonus or tax refund can go toward principal. Enter it as the extra yearly payment.
- Use a lump sum. Money from a windfall or the sale of an asset can be applied in one payment. Choose which payment number it lands on.
- Pay biweekly. Paying half your payment every two weeks makes 13 full payments a year instead of 12, which is like one extra monthly payment each year. Enter your monthly payment as the extra yearly amount to estimate it.
- Refinance to a shorter term. A shorter loan can lower the total interest, though it usually raises the monthly payment and may involve closing costs.
Before you pay extra
- Check your loan for a prepayment penalty, and ask how to make principal-only payments.
- Keep an emergency fund so a surprise expense does not force you to borrow at a higher rate.
- Compare your mortgage rate with other debts. Paying off higher-interest debt first may save more.
- Compare the interest you would avoid with what savings could earn. OurCD calculator can show the interest on a certificate of deposit.
- Extra payments can build equity faster. If you pay private mortgage insurance (PMI), ask your lender when it can be removed.
What this calculator does not include
The calculator covers principal and interest on a fixed-rate loan. It does not include property taxes, homeowners insurance, PMI, HOA fees, closing costs, or rate changes on adjustable-rate loans. Your lender's figures are the final word on your balance and payoff date. Results are estimates for planning and education, not financial advice.
Mortgage terms explained
- Original loan amount
- The amount you borrowed when you took out the mortgage.
- Remaining balance
- The principal you still owe. Interest is charged on this amount.
- Loan term
- The number of years you agreed to take to repay the loan, such as 15 or 30.
- Interest rate
- The yearly cost of borrowing, shown as a percentage of the balance.
- Principal
- The part of your payment that reduces the amount you owe.
- Amortization
- The schedule that splits each payment into principal and interest until the loan is repaid.
- Home equity
- The value of your home minus what you owe on it.
- Prepayment penalty
- A fee some lenders charge if you pay a loan down or off early.
- PITI
- Principal, interest, taxes, and insurance. Only the principal and interest part is calculated here.
Frequently asked questions
How does paying extra on a mortgage save money?
Interest is charged on your remaining balance each month. An extra payment that goes toward principal lowers the balance right away, so every later month is charged less interest. Because the monthly payment stays the same, more of each payment then goes to principal and the loan ends sooner.
How much extra should I pay each month?
Any amount helps, and the effect grows with the size and timing of the payment. Extra payments made early in the loan save the most, because the balance is highest and interest makes up most of each payment. Try a few amounts in the calculator and compare the interest saved and the new payoff time.
Does this calculator include taxes, insurance, and PMI?
No. It covers principal and interest only. Your full monthly housing payment may also include property taxes, homeowners insurance, private mortgage insurance (PMI), and HOA fees. Those amounts do not pay down your loan, so they are left out.
What is the difference between the original loan and the current balance?
If you know the original loan amount, rate, and term, enter them along with how long you have been paying and the calculator works out your balance. If you already know your current balance and how long is left on the loan, choose the current balance option and enter those numbers instead.
Will my lender apply extra payments to principal?
Not always automatically. Some lenders treat an extra payment as an early payment on the next month instead of a payment toward principal. Check how your lender accepts extra payments and make sure they are marked as principal-only. Also ask whether your loan has a prepayment penalty.
Is it better to pay off my mortgage early or save and invest?
It depends on your mortgage rate, your other debts, your savings, and your goals. Paying down a mortgage gives a guaranteed return equal to the interest you avoid. You can compare that with what savings could earn, for example with our CD calculator. Many people also build an emergency fund and pay off higher-interest debt first.
Does a biweekly payment plan pay off a mortgage faster?
Paying half of your monthly payment every two weeks adds up to 26 half payments, which equals 13 full payments in a year instead of 12. That works out to roughly one extra monthly payment per year. To estimate the effect, enter your monthly payment as the extra yearly payment in this calculator. Some lenders charge fees for biweekly plans, so check first.