Mortgage Payoff Calculator
See exactly how much interest you save and how many years earlier you pay off your mortgage by making extra monthly payments — with a complete side-by-side comparison.
How to Use the Mortgage Payoff Calculator
- 1
Enter your original loan amount and current remaining balance. You can find your current balance on your latest mortgage statement or lender portal. Enter the same amount for both if you are just starting a new mortgage.
- 2
Enter your current interest rate and original loan term. Then enter how much extra you can afford to pay each month above your regular payment. Even $100 to $300 extra per month can save tens of thousands in interest.
- 3
Optionally enter a one-time lump sum payment you plan to make today such as a tax refund or bonus. This is applied immediately to your principal and reduces your balance before calculating savings.
- 4
Click Calculate to see your new payoff date, total interest saved, and a complete side-by-side comparison of your current vs accelerated payoff plan. Download the free PDF to share with your financial advisor.
Example Payoff Calculation
Scenario: Original Loan $300,000 | Current Balance $280,000 | Rate 6.5% | 30-year term | Extra $300/month | Lump Sum $0
- Standard Monthly Payment: $1,896.20
- New Monthly Payment: $2,196.20
- Remaining Time (no extra): 298 months (24y 10m)
- New Payoff Time: 218 months (18y 2m)
- Total Interest (no extra): $284,664.41
- Total Interest (with extra): $196,913.98
- Interest Saved: $87,750.43
- Time Saved: 80 months (6y 8m)
"In this example, adding just $300 to your monthly payment saves you over $87,000 in interest and lets you celebrate your debt-free date more than 6 years sooner."
Frequently Asked Questions
How do extra mortgage payments work?
When you make an extra payment toward your mortgage it goes directly toward reducing your principal balance. A lower principal means less interest is charged the following month which accelerates your payoff. This compounding effect means even small consistent extra payments save disproportionately large amounts of interest over time.
Monthly payments or lump sum?
Consistent monthly extra payments are more powerful over time because they reduce your balance earlier and compound the savings month after month. A lump sum is excellent for windfalls like a tax refund or bonus. Combining both strategies gives you the fastest payoff.
Will my lender apply it to principal?
Not always. Some lenders may apply extra payments to future scheduled payments instead of principal unless specified. Always contact your lender or note on your payment that extra funds should be applied to principal only.
Pay off early or invest?
Paying off your mortgage provides a guaranteed risk-free return equal to your interest rate. If your mortgage rate is 6.5%, that is a solid guaranteed return. Investing in the stock market historically returns more but involves risk.
Disclaimer: This calculator provides estimates for informational purposes only. Mortgage payoff calculations are estimates based on the inputs provided assuming a fixed interest rate and equal monthly payments. Actual results may vary. Check with your lender before making extra payments to confirm they are applied to principal. Please consult a qualified financial professional before making any mortgage decisions.