FinanceFormula-based · Runs in your browser

Mortgage Payoff Calculator

See how much time and interest you can save by making extra payments on your mortgage.

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Calculation steps

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  1. 1

    Formula selected

    The calculator uses the following formula or method.

    Each month: interest = balance × monthly rate; payment = min(planned payment, balance + interest); new balance = balance + interest − payment. The two plans are simulated until payoff.

  2. 2

    Values entered

    Your values are placed into the calculation.

    Enter values to see what is used in this step.

  3. 3

    Result calculated

    The formula or method produces the following result values.

    Results will appear after a successful calculation.

  4. 4

    Answer formatted

    Displayed values are rounded and formatted using each output’s configured precision.

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How it works

See how much time and interest you can save by making extra payments on your mortgage.

Input query strings and outputs

Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.

Input query strings

4
  • ?balance= Current Balance ($)

    Number · Optional · Default: 250,000

  • ?rate= Interest Rate (%)

    Number · Optional · Default: 6.5

  • ?currentPayment= Current Monthly Payment ($)

    Number · Optional · Default: 1,800

  • ?extraPayment= Extra Monthly Payment ($)

    Number · Optional · Default: 200

Outputs

4
  • originalMonths Original payoff months

    Number

  • newMonths Accelerated payoff months

    Number

  • interestSaved Interest saved

    Currency · Primary output

  • monthsSaved Months saved

    Number

result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.

Accelerate your mortgage debt reduction

Description

The Mortgage Payoff Calculator allows you to see the impact of making extra monthly payments on your mortgage. It calculates how much interest you can save and how much sooner you will be debt-free by increasing your monthly contribution.

Inputs

  • Current Balance: The remaining principal balance on your mortgage ($).
  • Interest Rate: Your mortgage’s annual interest rate (%).
  • Current Monthly Payment: The amount you are currently paying toward principal and interest ($).
  • Extra Monthly Payment: The additional amount you plan to pay each month to speed up the payoff ($).

Outputs

  • Interest Saved: The total amount of interest you will avoid paying over the life of the loan.
  • Time Saved: The number of years and months shaved off your mortgage term.
  • New Payoff Time: The adjusted time it will take to reach a zero balance.

Chart

  • N/A: This tool focuses on the comparison between original and accelerated payoff timelines.

“Good to Know”

  • Even a small extra payment (e.g., $100/month) can save tens of thousands of dollars in interest on a typical 30-year mortgage.
  • Most mortgages allow for prepayment without penalty, but it is always wise to confirm with your lender.
  • Extra payments made early in the loan term have the greatest impact because they reduce the principal on which interest is calculated for all subsequent months.

Examples

Example 1: Aggressive Paydown

  • Input:
    • Balance: $250,000
    • Rate: 6.5%
    • Current Payment: $1,800
    • Extra Payment: $500
  • Output:
    • Interest Saved: ~$95,000
    • Time Saved: ~6.2 Years

Example 2: Small Monthly Boost

  • Input:
    • Balance: $150,000
    • Rate: 4%
    • Current Payment: $1,000
    • Extra Payment: $100
  • Output:
    • Interest Saved: ~$12,500
    • Time Saved: ~2.5 Years

Example 3: Large Balance Scenario

  • Input:
    • Balance: $500,000
    • Rate: 7%
    • Current Payment: $3,500
    • Extra Payment: $250
  • Output:
    • Interest Saved: ~$58,000
    • Time Saved: ~2.1 Years
Sources
Limitations
  • Estimates use the rates, timing, and assumptions entered. Fees, taxes, lender rules, and future changes are included only where explicitly shown.