Explore how additional payments change the time needed to clear a mortgage.
Mortgage Payoff Calculator
Form
Results
Table of Contents
1
What is Mortgage Payoff?
2
How to Use This Calculator
- Enter or select Original Loan Amount, Original Loan term, Interest Rate, Remaining Term, Payment Type. Complete any remaining fields required by your chosen method.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
3
Formula Used
Next balance = current balance × (1+r) − payment − extra principal. Repeat for each payment period.
4
Variables Explained
| Input | What it means |
|---|---|
| Original Loan Amount | Principal to be financed before any additional charges the form adds. |
| Original Loan term | The planned repayment duration, in the selected years or months. |
| Interest Rate | The quoted rate for the time basis shown in the form; an annual rate is not a monthly rate. |
| Remaining Term | Time left in the existing repayment schedule rather than the original full term. |
| Payment Type | Choose the applicable option; it determines which relationship or conversion the page applies. |
| Per Month | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Per Year | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| One Time | Elapsed time or duration in the unit selected on the form. |
5
Worked Example
A balance of 100,000 at a monthly rate of 0.5% accrues 500 interest. A 1,000 payment then reduces principal by 500.
6
Why Use This Calculator?
Compare the remaining cost of the current loan with the full cost of the proposed schedule, including the months you expect to keep the loan.
7
Common Mistakes
- A lower monthly payment can come from a longer term. Include closing costs, points and any change in principal before comparing total savings.
8
Frequently Asked Questions
What is the refinancing break-even point?
A simple estimate is upfront refinancing cost divided by monthly savings. It is only useful when the savings are positive and the loan balances and terms are compared consistently.
Does the payment include every borrowing cost?
The principal-and-interest formula covers the loan itself. Fees and other costs are included only where the form explicitly adds them; compare the estimate with the lender’s actual schedule.
9
Sources & References
Mini Calculator provides online calculators for multiple niches including mathematical, financial, Health, informative, Chemistry, physics, statistics, and conversions. You can use any calculator for free without any limits.