Mortgage repayment planner

Mortgage Payoff Calculator

Compare your scheduled mortgage payoff with extra monthly, annual, biweekly-equivalent, or one-time payments.

Loan and payment details

Enter the current mortgage figures

Payoff plan
$
Use the principal balance still owed, not the original purchase price.
%
Yrs
Yrs
Enter whole years; the remaining term cannot exceed the original term.
$
Optional; leave blank when it does not apply.
$
Spread evenly across the 12-month estimate.
$
Required when the one-time lump-sum plan is selected.
Payoff comparison

Estimated repayment outcome

Your payoff comparison will appear here

Enter the current balance, rate, remaining term, and any extra payments you plan to make.

What Is a Mortgage Payoff Calculator?

Use this mortgage payoff calculator to compare extra payments, estimate interest savings, and see how much sooner you could repay your current balance.

Mortgage payoff means reducing the unpaid principal—the money you still owe—to zero. This tool compares a fixed-rate monthly repayment schedule with a plan that adds principal payments. It reports estimated payoff time, time saved, total interest, interest saved, and total paid from now onward.

The estimate starts with your current balance. It does not reconstruct payments already made or provide a lender’s final payoff quote.

How to Use the Repayment Plans

  1. Enter Current mortgage balance ($) from a recent statement. Use unpaid principal, excluding future interest, escrow, and the home’s market value.
  2. Enter Annual interest rate (%), such as 6 for 6%. Use the loan’s interest rate rather than APR, which also reflects certain borrowing costs.
  3. Enter Original loan term (years) and Remaining term (years) as whole numbers from 1 to 100. The remaining term cannot exceed the original term. Only the remaining term determines the calculated payment; the original term is a validation check.
  4. Choose a Repayment plan using the explanations below.
  5. Complete any applicable Extra each month ($), Extra each year ($), and One-time principal payment ($) amounts. Optional blanks count as zero. The one-time amount must be less than the current balance.
  6. Select Compare payoff plans. Compare the scheduled payment with the principal-and-interest portion of your statement before interpreting the savings.

Numbers shown as placeholders are examples, not prefilled values. The initial plan is Add extra payments.

What each repayment plan includes

  • Add extra payments: adds the monthly extra and one-twelfth of the annual extra to every monthly payment. Any one-time amount reduces the starting balance.
  • Biweekly-equivalent payments: includes those same extras, plus one-twelfth of the scheduled monthly payment each month. It approximates the annual amount of 26 half payments; it does not simulate payments every 14 days.
  • One-time lump-sum payment: applies the one-time amount before the first month’s interest and keeps the scheduled monthly payment. Monthly and annual extras are ignored in this mode. The one-time field is required, although zero is accepted.
  • Scheduled payments only: ignores all three extra-payment fields.

How the Payoff Calculation Works

Let P be the current balance, a the annual interest rate entered as a percentage, r = a ÷ 100 ÷ 12 the monthly interest rate, and n = remaining years × 12.

M = P × r ÷ [1 − (1 + r)−n]

M is the scheduled monthly principal-and-interest payment. When the rate is zero, the calculator uses M = P ÷ n.

For monthly extra E and annual extra A, the added monthly amount X is:

  • Add extra payments: X = E + A ÷ 12.
  • Biweekly-equivalent payments: X = E + A ÷ 12 + M ÷ 12.
  • Scheduled or lump-sum-only plans: X = 0.

Start with B0 = P − L, where L is the applicable upfront lump sum. L is zero for scheduled-only payments. For each month t:

  1. Interest: It = Bt−1 × r.
  2. Payment: Ct = min(M + X, Bt−1 + It).
  3. New balance: Bt = Bt−1 + It − Ct.

The final payment is capped at the remaining balance plus that month’s interest. The simulation stops at payoff or the entered remaining number of months. Baseline interest is M × n − P; adjusted interest is the sum of monthly interest charges. Interest saved is the nonnegative difference between those totals. Time saved is n minus the simulated payment count.

Estimated total paid includes the upfront lump sum and all simulated monthly payments. Calculations retain unrounded values internally; displayed money is rounded to cents.

Inputs and Results Explained

Current mortgage balance ($), P
Positive unpaid principal today, in dollars.
Annual interest rate (%), a
Fixed annual interest rate, from 0% to 100%, divided by 12 for monthly accrual.
Original / remaining term (years)
Whole years; remaining years set n. There is no separate months field.
Extra each month / year ($), E / A
Nonnegative planned extras. Annual amounts are distributed equally across 12 months.
One-time principal payment ($), L
Nonnegative upfront reduction, strictly less than P; no future payment date can be selected.
Scheduled monthly payment, M
Calculated principal and interest needed to repay P over n months.
Adjusted monthly outlay
M plus the plan’s monthly extra. Excludes the upfront lump sum and may exceed the last payment.
Estimated adjusted payoff time
Simulated number of monthly payments, shown as years and months; not a calendar date.
Adjusted total interest / estimated interest saved
Future interest under the adjusted plan, and its reduction against scheduled payments.
Estimated total paid
Principal plus future interest, including the lump sum; excludes past payments and other housing costs.

Worked Example: Combining Extra Payments

Adding $200 per month, $1,200 per year, and $5,000 upfront

Enter a $250,000 current balance, 6% annual interest, a 30-year original term, and 25 years remaining. Choose Add extra payments, then enter $200 each month, $1,200 each year, and a $5,000 one-time principal payment.

  1. Monthly rate r = 0.06 ÷ 12 = 0.005; n = 25 × 12 = 300 months.
  2. M = 250,000 × 0.005 ÷ [1 − 1.005−300] = $1,610.75 displayed.
  3. X = 200 + 1,200 ÷ 12 = $300; adjusted monthly outlay is $1,910.75.
  4. The lump sum reduces the opening balance to $245,000. First-month interest is 245,000 × 0.005 = $1,225.
  5. The first monthly payment reduces principal by about $685.75, leaving about $244,314.25. Repeating the calculation produces 206 payments, with a smaller final payment of about $878.00.
Scheduled and adjusted repayment from today
MeasureScheduledWith extras
Monthly principal and interest outlay$1,610.75$1,910.75
Payoff time25 years17 years, 2 months
Future interest$233,226.05$147,582.46
Total paid from now$483,226.05$397,582.46

The modeled savings are $85,643.59 in interest and 94 months (7 years, 10 months). The adjusted total includes the $5,000 upfront payment. Keeping full precision until the end explains why multiplying rounded monthly amounts may give a slightly different total.

For a simpler check, leave the annual and one-time fields blank and enter only $200 extra per month with the same balance, rate, and terms. The estimate becomes 236 months and $175,579.72 in interest, saving $57,646.33.

Using the Results and Understanding the Limits

Compare a recurring commitment with a one-time payment

Use separate runs to compare an affordable monthly extra with an upfront amount. Keep the balance, rate, and remaining term unchanged so the difference reflects the repayment plan. A bonus paid next year cannot be modeled precisely as an upfront payment today.

Read the balance chart alongside the totals

The chart compares the scheduled and adjusted outstanding principal, with points at the start, yearly intervals, and payoff. A lower adjusted starting point reflects an upfront payment. A steeper decline reflects larger monthly principal reductions. The chart is not a transaction-by-transaction amortization table.

Check whether the baseline fits your loan

This calculator derives the payment from your current balance and remaining term; it has no field for your actual contractual payment. Previous overpayments, a modification, an interest-only period, or a term rounded to whole years can make the estimate differ from your statement. It does not model a recast that lowers required payments after a lump sum.

Payment timing changes the outcome

An annual extra is spread into monthly installments, starting in the first month. A real payment made at year-end leaves principal outstanding for longer. Likewise, the biweekly-equivalent mode adds M ÷ 12 each month and does not calculate daily interest, partial-payment holding periods, or actual biweekly posting dates.

Confirm costs and principal instructions

The model assumes a constant rate, on-time payments, and extras credited directly to principal. Ask your servicer how to designate extra principal and whether your contract includes prepayment charges. Taxes, homeowners insurance, mortgage insurance, escrow, servicing fees, penalties, tax effects, and alternative uses of the money are excluded.

Use the result as a planning estimate. Before making the final payment, request a payoff statement valid for your intended payment date; accrued interest and applicable charges can make it differ from the principal balance shown here.

Common Mortgage Payoff Mistakes

  • Entering the original loan amount: use the balance still owed today. Otherwise the tool calculates interest on principal you have already repaid.
  • Entering APR instead of the note rate: APR incorporates certain costs; this model needs the annual interest rate used to accrue loan interest.
  • Counting the same extra twice: if you intend $100 extra each month, enter either $100 monthly or $1,200 annually. Entering both models $200 extra per month.
  • Adding a biweekly extra twice: that mode automatically includes one additional scheduled monthly payment per year. Add other extras only if they are separate commitments.
  • Expecting all extra fields to apply in every mode: lump-sum-only ignores monthly and annual extras, and scheduled-only ignores all extras.
  • Comparing outlay with an escrow-inclusive bill: the displayed payments cover principal and interest. Keep taxes and insurance in your household budget separately.
  • Treating savings as a payoff quote: the estimate excludes lender-specific timing, charges, and any tax consequences.

Frequently Asked Questions

How much faster will I pay off my mortgage with $200 extra each month?

It depends on the balance, rate, and remaining term. For the $250,000, 6%, 25-years-remaining example above, $200 extra per month alone reduces the estimate from 300 to 236 months, saving 64 months and $57,646.33 in interest. Enter your own figures to compare.

Does a lump-sum payment lower my monthly mortgage payment?

In this model the scheduled monthly payment stays the same, so the loan finishes sooner. A lender-approved recast may change required payments, but recasting and any associated fees are not modeled here.

Is paying twice a month the same as paying every two weeks?

No. Two half payments each month total 24 half payments per year; the usual biweekly comparison uses 26. This calculator approximates that extra annual payment by adding one-twelfth of the scheduled monthly payment each month.

Can I model a year-end bonus or a future lump sum?

There is no payment-date input. Annual extras are spread equally over the monthly payments, and a one-time amount is applied immediately before the first month’s interest. A future bonus needs a dated repayment schedule for a precise comparison.

Why does the scheduled payment differ from my mortgage statement?

The tool calculates a new baseline from your current balance and whole years remaining. Your statement may include escrow or reflect previous overpayments, a different exact remaining term, rate changes, or a modified payment schedule. Compare principal and interest separately.

Can I use this for a zero-interest or adjustable-rate mortgage?

A 0% rate is supported: the scheduled payment is the balance divided by remaining months, and interest savings are zero. An adjustable-rate loan can only be explored at one assumed constant rate per run; future resets are not simulated.

Does the calculator give my exact mortgage payoff amount or date?

No. It reports a modeled duration in years and months, without a calendar start date. It excludes accrued daily interest and lender charges. Request a dated payoff statement from your servicer before settling the loan.

Does the original loan term change the result?

The original term checks that remaining years do not exceed the original years. With the same balance, rate, remaining term, and extra payments, changing the original term within that rule does not change the calculated schedule.

Sources & References