Mortgage payoff calculator
Enter what you owe, the rate and your monthly payment to see when the mortgage ends. Add an extra payment each month, a one-time payment, or both, to see how much time and interest they save.
This answer is for the example values in the boxes above. $250,000.00 owed at 6%, paying $1,498.88 a month, with $200.00 extra each month. Change the boxes to see your own answer.
The calculator assumes that the lender puts an extra payment on the balance, and it rounds each month's interest to the cent.
How it works
The loan calculator starts from a new loan. This page starts from where you are: the balance you owe today, the rate, and the payment that you really make. Each month the calculator charges interest on the balance, takes your payment and any extra off it, and goes on until the balance reaches zero. The interest of each month is rounded to the cent.
Two boxes make the loan end sooner. The extra payment is added to the payment every month. The one-time payment lowers the balance at the start, as if you had paid it today.
A worked example
You owe $250,000 at 6 percent and pay $1,498.88 a month. With no extra the mortgage ends after 360 months, which is 30 years, and costs $289,593.37 in interest.
Add $200 a month and it ends after 267 months, which is 22 years and 3 months, so 93 months or 7 years and 9 months sooner. The interest is $203,361.39, which is $86,231.98 less.
A one-time payment
A single payment of $20,000 today, with no extra each month, ends the same mortgage after 293 months, which is 24 years and 5 months. That is 67 months sooner, and it saves $81,503.72. With the $200 each month as well, it ends after 227 months, which is 18 years and 11 months, and saves $134,739.42.
A balance of $200,000 at 5 percent paid with $1,400 a month ends after 218 months, which is 18 years and 2 months, with $104,530.83 of interest.
What it leaves out
The calculator assumes that your lender puts an extra payment on the balance. It does not know about charges for paying early, escrow for taxes and insurance, or a rate that changes. A payment that is too small to cover the interest, or that would take more than 100 years, is refused with a message.
Questions
How do I pay off my mortgage early?
Pay more than the payment each month, or make a single large payment, and have the lender put it on the balance. On $250,000 owed at 6%, $200 extra each month ends the mortgage 93 months sooner.
How is the payoff date worked out?
The calculator pays the loan month by month. Each month’s interest is charged on the balance, and the payment and the extra lower it. The month when the balance reaches $0.00 is the last one.
How much does a one-time payment save?
A single $20,000 payment now, on $250,000 owed at 6% with a $1,498.88 payment, ends the mortgage after 293 months and not 360, and saves $81,503.72 of interest.
Which payment do I enter?
The part of your monthly payment that goes to principal and interest. Leave out property tax, insurance and dues, which are not part of the loan.
What if my payment is too small?
A payment that does not cover the first month’s interest cannot pay the loan off. On $250,000 at 6% the first month’s interest is $1,250.00, so a payment of $1,000.00 is refused.
Does the extra payment go to the principal?
The calculator assumes that it does. Your loan papers say how your lender applies an extra payment, and whether there is a charge for paying early.
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