Mortgage Payoff Calculator

Calculate how extra payments can reduce your mortgage term and interest costs. Choose between two modes based on whether you know the remaining loan term.

If You Know the Remaining Loan Term

Detailed Explanation

This calculation simulates the amortization schedule month-by-month, applying extra payments to principal after interest. Bi-weekly options accelerate by making 13 full payments per year. Consider opportunity costs: If your mortgage rate is low (e.g., <5%), investing extras in stocks (avg. 7-10% return) or maxing retirement accounts might yield more. Always check for prepayment penalties. For refinance, use our Refinance Calculator.

If You Dont Know the Remaining Loan Term

Detailed Explanation

The remaining term is solved numerically from the payment formula. Simulation accounts for interest-first allocation, with extras reducing principal directly. Bi-weekly adds ~1 extra payment/year. Consider opportunity costs: pay high-interest debt first, build an emergency fund, or invest if returns exceed mortgage rate. No prepayment penalties on FHA/VA loans.

Mortgage Payoff Calculator – Find Your Payoff Date & Interest Savings

A mortgage payoff calculator helps you estimate how fast you can pay off your home loan — and how much interest you can save — by making extra payments. Whether you add a little each month, make a yearly lump sum, or switch to bi-weekly payments, this tool shows the impact on your payoff time and total cost.

Use this calculator to compare your current payoff plan vs. an accelerated plan, view an amortization snapshot, and understand your monthly interest vs. principal breakdown.

Table of Contents

How This Mortgage Payoff Calculator Works

This tool uses standard amortization math to estimate your payoff schedule. Each month, your payment first covers interest, then reduces principal. Any extra payment is applied to principal (which reduces future interest and can shorten your loan term).

What it calculates

  • Estimated payoff time (months/years)
  • Total interest remaining (original plan vs extra-pay plan)
  • Interest savings from extra payments
  • Time savings (how many months you finish early)
  • Amortization snapshot (balance, interest, principal, extra)
Simple idea: The sooner you reduce principal, the less interest accrues over time.

Two Calculation Modes (Know Remaining Term vs Don’t Know Remaining Term)

1) If you know the remaining loan term

Enter your original loan amount, original term, interest rate, and how many years/months are left. The calculator estimates your remaining balance based on the original amortization schedule, then simulates payoff with extra payments.

2) If you don’t know the remaining loan term

If you only know your unpaid principal balance and your monthly payment, the calculator estimates the remaining term from the payment formula and interest rate — then simulates how extra payments change your payoff date.

Note: Results are estimates. Your real payoff depends on your lender’s payment posting rules, escrow changes, and whether extra payments are applied to principal.

Extra Payments Explained (Monthly, Yearly, One-Time, Bi-Weekly)

Monthly extra payments

Add a fixed amount every month (most consistent strategy). Even $50–$200 can create meaningful interest savings over time.

Yearly extra payments

Useful if you get bonuses or tax refunds. The calculator spreads the yearly extra into an estimated monthly effect (so you can compare plans).

One-time lump sum

Great for windfalls. Paying a lump sum early in your loan usually saves more interest than paying the same amount later.

Bi-weekly payments

Paying every two weeks often results in ~1 extra full payment each year (26 half-payments). That can shorten your loan and reduce interest.

Understanding Your Mortgage Payoff Results

  • Remaining Balance: Estimated principal left to repay.
  • Original Interest: Estimated interest you’d pay if you keep the current plan.
  • Payoff Interest: Interest paid with your extra payment plan.
  • Interest Savings: Original interest − payoff interest.
  • Payoff Time: How long it takes to reach $0 balance under the new plan.
  • Time Savings: How many months earlier you finish compared to the original plan.
Pro tip: If your lender allows it, mark extra payments as “principal only” so the money reduces the balance (not “prepay interest” or “advance due date”).

A Real-Style Scenario: How Extra Payments Change the Payoff Date

Rahul has a 30-year mortgage. After a few years, he checks his statement and notices that a big part of each payment is still going to interest. He decides to try an extra payment strategy.

  • He enters his remaining balance, interest rate, and monthly payment.
  • Then he tests “extra $200/month” vs “one-time $5,000” vs “bi-weekly payments”.
  • The calculator shows his new payoff time and the interest he saves.

With a consistent extra payment, Rahul sees that he can potentially finish years earlier and save thousands in interest — without refinancing.

This is an illustrative scenario for education. Real savings depend on your exact loan terms and payment processing.

Smart Mortgage Payoff Tips (Before You Pay Extra)

  • Confirm prepayment rules: Some loans have restrictions or penalties (less common today, but still possible).
  • Emergency fund first: Don’t lock all cash into your home if you don’t have safety savings.
  • Compare opportunity cost: If your mortgage rate is low, investing may outperform extra payments (depends on risk tolerance).
  • High-interest debt priority: Credit card debt often costs more than mortgage interest.
  • Re-check yearly: If your income changes, update your plan and re-run the calculator.

Want to compare refinancing? Try the Refinance Calculator from the Related Calculators section.

FAQs – Mortgage Payoff Calculator

1) Does making extra payments reduce my monthly payment?

Usually, no. Extra payments typically reduce your principal and shorten the loan term (payoff earlier). Your required monthly payment stays the same unless you refinance or recast the loan (if your lender offers recasting).

2) Is bi-weekly really better than monthly?

Bi-weekly often results in one extra full payment per year, which can speed up payoff and reduce interest. The benefit is similar to making a small extra monthly payment — it’s mainly about consistency.

3) Should I pay extra monthly or do a lump sum?

Generally, earlier is better because interest accrues over time. A lump sum early in the loan can save more interest than the same amount spread later — but monthly extras are easier to stick to.

4) Why might my lender payoff date differ from this calculator?

Differences can happen due to rounding, daily interest vs monthly interest methods, escrow changes, payment posting dates, and whether extra payments are applied to principal immediately.

5) What inputs are most important for accuracy?

The interest rate, unpaid principal balance (or original amount + remaining term), and your actual monthly payment are key. Use your latest mortgage statement for best results.

6) Will extra payments affect escrow (tax/insurance)?

Extra payments usually apply to principal only and don’t directly reduce escrow. Escrow is based on taxes/insurance and may change annually.

About This Mortgage Payoff Calculator

  • Uses amortization-style month-by-month simulation for payoff estimates.
  • Supports extra payment frequency: monthly, yearly, one-time, and bi-weekly.
  • Designed for general planning — not a lender statement replacement.
  • Last updated: 2/4/2026

Financial Disclaimer

This mortgage payoff calculator is for educational and informational purposes only. It does not provide financial advice, tax advice, or investment advice. Loan payoff results are estimates and may differ from your lender’s actual schedule due to fees, escrow, rounding, payment posting rules, and loan terms. Always confirm details with your lender or a qualified financial professional.

Mortgage Tips

  • Verify loan details from your mortgage statement for accuracy.
  • Check for prepayment penalties in your loan agreement.
  • Compare extra payments with investment returns before deciding.