Mortgage Payoff Calculator
See exactly how many years and how many dollars of interest an extra monthly payment shaves off your mortgage. Compares your current amortization schedule side by side with an accelerated one so the payoff savings are concrete.
How to Use
- Enter your remaining loan balance.
- Enter your current annual interest rate (APR).
- Enter your current monthly payment of principal and interest.
- Enter the extra amount you want to add to each payment.
- Read the side-by-side comparison: payoff time and total interest with and without the extra, plus the months and interest you save.
Show Work
Tip
About the Mortgage Payoff Calculator
The Mortgage Payoff Calculator is a free tool for personal-finance and money decisions. It runs right in your web browser, so there is nothing to download. See exactly how many years and how many dollars of interest an extra monthly payment shaves off your mortgage. Compares your current amortization schedule side by side with an accelerated one so the payoff savings are concrete.
How it works
Type your numbers into the boxes. The answer shows up right away — you do not have to press a button. If you change a number, the answer changes too. So you can try different numbers and watch what happens, or check an answer you worked out yourself. Just make sure each box has the right kind of number in it.
Want the deeper story? The Knowledge Base explains the ideas behind the tools in more detail.
Frequently Asked Questions
How do extra payments pay off a mortgage faster?
Any amount above the scheduled payment is applied straight to the principal balance. Because interest each month is charged on the remaining balance, knocking down principal early means less interest accrues over the rest of the loan, which compounds into a meaningfully shorter term and large interest savings.
Is it better to pay extra each month or make one lump sum?
Both reduce principal and save interest; the sooner the money hits principal, the more it saves. Consistent monthly extras are easy to budget and start saving immediately, while a lump sum (such as a bonus or tax refund) takes a bigger bite at once. This tool models a recurring monthly extra, but a lump sum lowers your balance the same way.
Should I tell my lender the extra is for principal?
Yes. Many servicers apply unlabeled overpayments toward the next scheduled payment or hold them, rather than reducing principal. Note "apply to principal" on the payment or use your lender's principal-only option so the extra actually shortens the loan as this calculator assumes.
Are prepayment penalties a concern?
Most modern conforming U.S. mortgages have no prepayment penalty, but some older or non-conforming loans do. Check your note or call your servicer before committing to an aggressive payoff plan so a penalty does not eat into your interest savings.
Should I pay off the mortgage or invest the money instead?
It depends on your mortgage rate, expected investment returns, tax situation, and risk tolerance. Paying down a higher-rate mortgage is a guaranteed, risk-free return equal to the rate, while investing may earn more but carries risk. This is an estimate to inform the trade-off, not personalized financial advice — consider your full picture or a professional.
How do I use the Mortgage Payoff Calculator?
Just type your numbers. The answer shows up right away — there is no button to press. Change anything and it updates by itself.
Is it free? Does it work without internet?
Yes to both. It is free with no sign-up, and once the page has loaded it keeps working even with no internet.
Where does my data go?
Nowhere — every calculation runs on your own device. Nothing you enter is uploaded, logged, or stored.
Common Use Cases
Deciding how much extra to add
Compare adding $100, $200, or $500 a month to see which level of extra payment best balances payoff speed against your budget.
Targeting a payoff date
Dial the extra payment up or down until the accelerated schedule lines up with a retirement date or other milestone.
Quantifying interest savings
Put a dollar figure on what an extra payment saves in lifetime interest before committing the cash.
Comparing payoff vs. other goals
See the guaranteed interest savings from prepaying so you can weigh it against investing or other debt.
Rounding up the payment
Check the impact of simply rounding a $1,264 payment up to $1,400 each month over the life of the loan.
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