Mortgage Payoff Calculator

It's simple. While standard calculators only show your minimum payments, our early mortgage payoff calculator lets you see the impact of acceleration.

Steps to calculate early payoff:

1. Enter your loan details (Balance, Rate, Term).
2. Input an amount in the "Extra Payment" field (Monthly, Yearly, or One-time).
3. The tool will instantly display your new, earlier payoff date and total interest savings.

Use this feature to plan how to be debt-free years ahead of schedule.

Yes. Although designed as a mortgage loan payoff calculator, the math applies to most amortized loans (like auto loans or personal loans).

As long as your loan has a fixed interest rate and regular monthly payments, you can use this tool to calculate early payoff of mortgage or other debts. Just ensure you enter the correct current principal balance and interest rate to get accurate results.

Using a mortgage calculator for early payoff reveals the "Interest Saved" figure, which is often shocking.

For example: On a $300,000 loan at 6%, paying just $100 extra per month can save you over $30,000 in interest. This tool calculates those exact savings based on your specific numbers, helping you decide if an early payoff strategy is right for your budget.

Your current mortgage balance only reflects the principal you owe as of your last statement. However, interest on mortgages accumulates daily (known as accrued interest).

The payoff amount is the total sum required to satisfy the loan on a specific future date. It includes:

1. The outstanding principal balance.
2. Per diem interest (daily interest) from your last payment date up to the payoff date.
3. Any applicable recording fees or prepayment penalties.

Tip: Always request an official quote from your lender for the exact down-to-the-cent figure.

Per diem interest is the interest you are charged every single day. To calculate it manually:

1. Take your annual interest rate (e.g., 5% or 0.05).
2. Divide it by 365 (days in a year) to get the daily rate.
3. Multiply the daily rate by your current loan balance.

Formula: (Interest Rate ÷ 365) × Loan Balance = Daily Interest Cost

When calculating your payoff, you multiply this daily cost by the number of days until your payment clears. Our mortgage payoff calculator handles this math for you automatically.

When selling your home, the payoff calculation must align with your closing date.

1. Estimate Closing Date: Pick a tentative date when the sale will finalize.
2. Add Buffer Days: It's wise to add 2-3 extra days of interest to account for wire transfer delays or closing extensions.
3. Deduct from Proceeds: The title company will typically subtract this payoff amount from your home sale proceeds before giving you the final check.

Yes, use this simple trick: Since bi-weekly payments result in making one extra full mortgage payment per year, you can simulate the exact same savings on a monthly schedule.

The Strategy:

1. Divide your monthly principal & interest payment by 12.
2. Enter that amount in the "Extra Monthly Payment" field.

Example: If your payment is $1,200, divide by 12 to get $100. By adding $100/month, you achieve the same accelerated payoff benefit as a bi-weekly plan without changing your bank setup.

• Lump Sum: This is a one-time large payment (e.g., from a bonus or inheritance). Entering a lump sum into the calculator shows how much immediate interest you save over the life of the loan.
• Extra Monthly Payments: This is adding a small amount (e.g., $100) to your bill every month. This creates a snowball effect that accelerates your payoff date gradually.

Both methods reduce your principal balance faster, but they affect your amortization schedule differently.

This depends on the spread between your mortgage interest rate and your expected investment return.

• Scenario A: If your mortgage rate is high (e.g., 7%) and safe investments pay 5%, paying off the mortgage is a guaranteed 7% return.
• Scenario B: If your mortgage rate is low (e.g., 3%) and the market returns 8%, investing might be more profitable.

Use our calculator to see how much interest you save, and compare that "guaranteed return" against your investment portfolio goals.

If you prefer using a spreadsheet, you can use the NPER function to see how many payments remain after adding extra principal.

Excel Formula: =NPER(Rate/12, -Current_Payment, Current_Balance)

• Rate: Your annual interest rate.
• Current_Payment: Your total monthly payment (principal + interest).
• Current_Balance: What you owe today.

However, Excel formulas can be tricky with extra principal payments. Using our online early mortgage payoff calculator is typically faster and visualizes the amortization schedule instantly.

While online calculators provide excellent estimates for planning, they are not legal documents. To pay off your loan completely:

1. Contact your loan servicer (bank).
2. Request a "Payoff Statement" or "Payoff Quote."
3. They will provide a specific amount valid for a specific date (e.g., "Good through Dec 31st").

Note: Never send the final wire transfer based solely on a calculator's estimate; always match the servicer's official quote.