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Mortgage Payoff Calculator
Mortgage Payoff Calculator
See how extra payments can save you years of interest and clear your debt faster
0
Years Saved
By making extra payments
Interest Saved
$0
New Payoff Time
0 Yrs
Total Interest Paid
$0
Balance Comparison
About the Mortgage Payoff Calculator
See how much sooner you can pay off a mortgage, and how much interest you save, by paying extra each month or making a one-off lump sum.
How to use the Mortgage Payoff Calculator
- Enter your Current Balance, Interest Rate (%) and Monthly Payment.
- Enter an Extra Monthly amount and/or a One-time Lump Sum.
- Press Calculate Time Saved.
Formula and method
Months = −ln(1 − B × r ÷ P) ÷ ln(1 + r), with B the balance, r the monthly rate and P the monthly payment.
Worked example
A $200,000 balance at 6% with a $1,199.10 payment takes 360 months. Adding $200 a month cuts that to about 252 months and saves roughly $79,800 in interest.
Small extras add up. On a $300,000 loan at 6.5% over 30 years, paying an extra $200 each month clears the loan in about 23 years instead of 30 and saves roughly $103,000 in interest.
When to use the Mortgage Payoff Calculator
- Seeing how much sooner you could be mortgage-free by paying extra each month.
- Estimating the interest saved by paying a lump sum.
- Deciding between extra payments and investing the money.
Common mistakes to avoid
- Not telling your lender that extra money should reduce the principal.
- Paying extra when you still have high-interest debt.
- Using all your spare cash and having nothing left for emergencies.
Tips
- Tell your lender that extra payments should go towards principal.
- Check for prepayment penalties before paying extra.
- Compare the return of overpaying with what you could earn by investing.
Frequently Asked Questions
It guarantees a return equal to your mortgage rate. It suits people with high rates or who value being debt free, after building an emergency fund.
Earlier is better, because extra principal paid early cuts the interest for many more years.
Some loans have prepayment penalties. Check your loan agreement first.