Mortgage Payoff Calculator
Calculate how soon you can pay off your mortgage with additional payments
Loan Information
Payoff Results
Comparison
You Could Save
By paying an extra $100 per month, you could pay off your mortgage 4 years and 2 months earlier and save $42,180 in interest.
Mortgage Payoff Calculator | Pay Off Your Mortgage Early
Want to become debt-free faster? Our Mortgage Payoff Calculator helps you see how extra payments can shorten your loan term and save you thousands in interest. Simply enter your loan amount, interest rate, term, and extra payments to calculate your new payoff schedule.
What is a Mortgage Payoff Calculator?
A mortgage payoff calculator shows how quickly you can pay off your home loan by making extra payments. Instead of sticking to the bank’s 30-year schedule, you can plan smarter and achieve financial freedom years earlier.
It’s an essential tool for:
Homeowners planning early payoff
People deciding between paying extra vs investing
Anyone looking to save on long-term mortgage interest
How Mortgage Payoff Works
When you make extra payments toward your loan’s principal balance, you reduce the amount on which future interest is calculated. Over time, this means:
Lower total interest paid
Shorter loan term
Faster homeownership
Mortgage Payoff Formula
While our calculator does the hard work for you, here’s the formula behind mortgage payoff:
M=P×r(1+r)n(1+r)n−1M = P \times \frac{r(1+r)^n}{(1+r)^n – 1}
Where:
M = monthly payment
P = loan amount (principal)
r = monthly interest rate (annual ÷ 12)
n = number of months
When you add extra payments, the remaining principal shrinks faster, reducing both loan term and interest.
Worked Example
Loan details:
Loan Amount: $200,000
Interest Rate: 5%
Loan Term: 30 years
Extra Monthly Payment: $200
Without extra payments:
Monthly Payment = $1,073
Total Interest Paid ≈ $186,000
Loan Term = 30 years
With $200 extra monthly payments:
Loan Term = ~25 years
Total Interest Paid ≈ $151,000
Savings = $35,000 interest + 5 years off loan
Even small extra payments make a huge impact over time!
Benefits of Paying Off Your Mortgage Early
Save thousands of dollars in interest
Own your home sooner
Gain peace of mind & financial security
Free up income for other investments
Reduce long-term debt stress
How to Use Our Mortgage Payoff Calculator
Enter your loan amount, interest rate, and loan term.
Enter your planned extra payments (monthly, yearly, or one-time).
Instantly see:
New loan term
Interest saved
Payoff date
FAQs about Mortgage Payoff
Q1. Does paying bi-weekly reduce mortgage faster?
Yes — splitting your monthly payment in half and paying every two weeks equals 13 full payments per year instead of 12, which shortens the loan.
Q2. Is it better to pay off mortgage early or invest?
It depends. Paying off mortgage early guarantees savings equal to your interest rate, while investing could yield higher returns but carries risk.
Q3. Can small extra payments really help?
Absolutely. Even $100 extra per month can save years off your loan term.
Q4. Should I refinance before making extra payments?
Refinancing may help if you can secure a lower rate, but extra payments alone can still save a lot on interest.