FINANCIAL · MORTGAGE PAYOFF

Mortgage Payoff Calculator

See how extra monthly principal payments reduce your mortgage payoff time and total interest paid.

Current Mortgage

Years left on your current mortgage.

Extra Payment

Amount applied to principal every month in addition to your regular payment.

02 You Save
Interest saved
$72,686.75
5 yr 7 mo sooner
03 Comparison
Scheduled payment$1,766.95
Your new monthly payment$1,966.95
Payoff time (no extra payment)25 yr 0 mo
Payoff time (with extra payment)19 yr 5 mo
Total interest (no extra payment)$280,083.50
Total interest (with extra payment)$207,396.75

This estimate assumes a fixed interest rate and that the extra payment is applied to principal every month. Actual results may vary — verify with your lender whether extra payments are applied to principal.

About This Calculator

Find out how much time and interest you save by making extra monthly principal payments on your mortgage. Enter your remaining balance, interest rate, remaining term, and the extra amount you want to pay each month.

How It Works

The calculator computes your scheduled monthly payment using the standard amortization formula. It then simulates two amortization schedules — one with only the required payment, and one with your extra payment applied to principal each month. The difference in total interest and payoff months shows you exactly how much you save.

The Formula

M = P × r(1+r)^n / [(1+r)^n − 1]

M
Scheduled monthly payment
P
Remaining loan balance
r
Monthly interest rate = annual rate / 12 / 100
n
Remaining term in months

Frequently Asked Questions

Does my lender allow extra principal payments?
Most mortgages permit extra principal payments without penalty, but confirm with your lender. Some loans have prepayment penalties — check your loan agreement before making extra payments.
How are extra payments applied?
This calculator assumes your extra payment is applied directly to principal each month. In practice, you may need to specify "apply to principal" when making the payment to avoid it being applied to future scheduled payments.
Should I pay off my mortgage early vs. invest?
The decision depends on your mortgage rate, expected investment returns, tax situation, and risk tolerance. A financial advisor can help you evaluate both paths given your specific circumstances.
What if I have a variable-rate mortgage?
This calculator assumes a fixed interest rate. Variable-rate results would differ as the rate changes over time.