🏡 Mortgage Payoff Calculator

What is this tool?

Our Mortgage Payoff Calculator shows you how much time and money you can save by making extra monthly payments on your mortgage. Compare the standard payoff schedule against an accelerated plan to see the dramatic impact of extra payments on total interest and payoff date.

How it works

The calculator first computes the standard monthly payment using the amortization formula. It then runs two simulations: one with no extra payment (standard) and one with your specified extra monthly payment. Each simulation iterates month by month, applying interest and payments, until the balance reaches zero. The results show the payoff dates, total interest paid for both scenarios, and the savings achieved.

How to use

1. Enter your current mortgage loan balance.
2. Enter your annual interest rate.
3. Enter the remaining loan term in years.
4. Enter the extra amount you can pay each month.
5. Click Calculate to compare standard vs accelerated payoff and see your savings.

Reference Table

Frequently Asked Questions

Are there prepayment penalties?

Some mortgages have prepayment penalties. Check your loan documents or ask your lender before making extra payments.

Should I invest extra money instead?

If your mortgage rate is low (under 4%), investing may yield better returns. For higher rates, paying down the mortgage is a guaranteed return.

Can I make extra payments anytime?

Most lenders allow extra payments without restriction. Specify that extra payments should go toward the principal balance, not future payments.

Tips & Advice

Even small extra payments make a huge difference over 30 years. A bi-weekly payment schedule (making half your monthly payment every 2 weeks) results in one extra full payment per year. Always confirm with your lender that extra payments are applied to the principal to maximize savings.