Mortgage Payoff Calculator
Type in your balance, rate and an extra monthly payment. You will see your new payoff date and how much interest you save.
By Muhammad AhmadUpdated October 2026Free, no sign-up
Results are estimates for planning and learning, not financial, tax or medical advice. Read our editorial policy.
How It Works
This mortgage payoff calculator starts with your remaining balance, interest rate and years left, then builds a full month-by-month amortization schedule twice: once with your regular payment and once with your extra payments added. Comparing the two schedules shows how much interest you save and how many months you shave off the loan.
Every month your lender charges interest on the outstanding balance, and the rest of your payment reduces principal. Early in a 30-year loan, most of each payment is interest. Any extra dollar you send goes straight to principal, which lowers the balance that interest is charged on next month. That compounding effect is why modest extra payments can remove years from a mortgage.
Use the extra payment per month field for a recurring amount, such as an additional $200 each month. Use the one-time extra payment field for a lump sum like a tax refund or bonus. The yearly summary table shows how much principal and interest you pay each calendar year, and the expandable monthly table lists every payment so you can see the exact month your balance hits zero.
Before you start, confirm with your servicer that extra payments are applied to principal and that your loan has no prepayment penalty — most conventional US mortgages do not. Also remember that this tool covers principal and interest only; property taxes, homeowners insurance and PMI are separate. If you are weighing extra payments against investing, compare your mortgage rate with realistic after-tax investment returns, and keep an emergency fund in place first.
Formula Explained
Monthly payment M = P × r ÷ (1 − (1 + r)−n), where P is the loan balance, r is the monthly rate (APR ÷ 12) and n is the number of monthly payments.
Each month: interest = balance × r; principal = payment − interest; new balance = balance − principal − extra. The loop repeats until the balance reaches zero. Interest saved = total interest (no extra) − total interest (with extra).
Frequently Asked Questions
How do extra mortgage payments save money?
Extra payments reduce principal immediately, so every following month you are charged interest on a smaller balance. Over many years that compounding effect saves thousands of dollars and shortens the loan.
Is it better to pay extra monthly or make one lump sum?
Both reduce interest. The earlier any extra money lands, the more interest it avoids, so a lump sum early in the loan has the biggest single effect, while small monthly extras are easier to sustain.
Will extra payments lower my monthly payment?
Usually not. Extra payments shorten your term but your required monthly payment stays the same unless you ask your lender to recast the loan.
Do I need to tell my lender the extra goes to principal?
Yes. Many servicers apply extra money to the next scheduled payment unless you specify “principal only.” Check your statement to confirm it was applied correctly.
Do most US mortgages have prepayment penalties?
Most conventional, FHA and VA loans do not. Some loans do, so read your note or ask your servicer before making large extra payments.
Does this include taxes, insurance and PMI?
No. The calculator shows principal and interest only. Escrow items such as property tax, homeowners insurance and PMI are billed separately.
Should I pay off my mortgage or invest instead?
It depends on your mortgage rate, expected after-tax returns, risk tolerance and emergency savings. A guaranteed saving equal to your mortgage rate is attractive when rates are high.
How accurate is the payoff date?
It is accurate for a fixed-rate loan when payments are made on time. Adjustable-rate loans, skipped payments or changes in servicing can change the actual date.
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