Calculator
Mortgage Payoff Calculator
Estimate your mortgage payoff date, total interest, and how much time and money you can save with extra payments or a one-time lump sum.
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Assumptions
• Payments are applied monthly. • Extra monthly and lump sum reduce principal. • Taxes/insurance (escrow) are not included. • This is an estimate.
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What is a mortgage payoff calculator?
A mortgage payoff calculator helps you estimate when your home loan could be paid off based on your current balance, interest rate, remaining term, and any extra payments you make. By modeling how interest accrues each month and how additional principal payments reduce that balance, you can see how small changes today may shorten your payoff timeline.
Many homeowners underestimate how much interest is paid over the life of a loan. Because mortgage interest is calculated on your remaining principal balance, reducing that balance earlier can significantly decrease total interest costs.
How extra mortgage payments reduce interest
When you make your regular mortgage payment, part goes toward interest and part toward principal. Extra payments are typically applied directly to principal (confirm with your lender). Lower principal means less interest charged the following month.
Even an additional $100–$200 per month can remove years from a 30-year mortgage, depending on your interest rate and remaining balance.
Should you pay off your mortgage early?
Whether paying off your mortgage early is the right move depends on your financial goals, interest rate, investment opportunities, and risk tolerance.
- If your mortgage rate is high, extra payments may provide a guaranteed “return” equal to that rate.
- If your rate is low, investing excess funds elsewhere could potentially yield higher long-term returns.
- Building an emergency fund should generally come first.
Biweekly vs monthly payments
Some homeowners switch to biweekly payments (26 half-payments per year), which results in one extra full payment annually. This can shorten the loan term without feeling like a large monthly increase.
What this calculator includes
- Monthly amortization estimate
- Optional extra monthly payments
- Optional one-time lump sum payments
- Estimated payoff date
- Total interest paid
- Interest saved compared to baseline
What this calculator does not include
- Property taxes or insurance (escrow)
- Lender-specific compounding variations
- Prepayment penalties (if any apply to your loan)
Frequently asked questions about paying off a mortgage
Is it better to make extra payments or refinance?
Refinancing may lower your interest rate, but it comes with closing costs. Extra payments reduce principal immediately without refinancing fees. Comparing both options can help determine which saves more over time.
How much interest can you save by paying early?
The amount depends on your balance, rate, and how early you start making extra payments. Earlier principal reductions generally produce the greatest savings.
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FAQ
Does this include property tax and insurance?
No. This focuses on principal and interest only. Escrow items vary by location and lender.
Why is my real payoff date different?
Your lender may calculate interest daily, payments may post on different dates, and fees/escrow can vary. This is a monthly estimate.
Should I pay extra or invest instead?
That depends on your rate, risk tolerance, and goals. This calculator is educational—consider a professional for personalized guidance.