Free Mortgage Payoff Calculator (+ Guide)

What is a mortgage payoff calculator?

A mortgage payoff calculator shows how extra payments change your payoff date and the interest you pay. It runs your mortgage month by month twice: as it is, and with your extra payments.

Every extra dollar goes straight to the balance. A smaller balance means less interest every month after, so the loan shrinks faster and faster.

How to use the mortgage payoff calculator

You need three numbers from your latest mortgage statement.

Leave tax and insurance out of the payment, since they don't pay down the loan.

A worked example

Here's the example the calculator loads when you press Try an example.

You owe $280,000 at 6.5%, and you pay $1,950 a month for principal and interest. At that payment, the mortgage is paid off in 279 months, a little over 23 years, with $262,934 of interest.

Add $250 a month and it's paid off in 217 months instead. That's 62 months sooner, more than 5 years, and you pay $196,174 of interest, saving $66,761.

How much each extra amount saves

Here's the same mortgage with different extra payments a month.

Even $100 a month takes almost 2.5 years off. Pick an amount you can keep paying, since a steady extra beats a big one you stop.

A one-off $10,000 today saves $32,301 and 22 months. Lump sums work best early, when the balance and the interest are highest.

Pay off the mortgage or invest?

It's a real choice, and the answer depends on your numbers.

Compare your rate with your return

Paying off a 6.5% mortgage earns a sure 6.5% on every extra dollar. Investing only wins if you'd earn more than that after tax, and that return isn't promised.

Keep cash for emergencies first

Money in your home is hard to get back out. Keep a cash buffer before you send extra to the mortgage.

Think about how you want to feel

A paid-off home lowers what you need each month, which makes every other plan easier. The retirement calculator shows what that does to your target.

Run both paths: this calculator for the mortgage, and the compound interest calculator for investing the same amount.

Before you pay extra

Check these with your lender first, so your extra money does what you want.

• Paying extra without checking for a fee on paying early
• Letting the lender put the extra toward next month's payment instead of the balance
• Using your emergency fund to pay down the mortgage
• Paying extra on the mortgage while carrying expensive card debt

Ask your lender how to mark a payment as principal only, and check your next statement.

Who is the mortgage payoff calculator for?

It's for homeowners with a mortgage who want it gone sooner, and these tools help with the plan.

• Mortgage calculator – for the full monthly cost of a new home loan
• Debt payoff calculator – for clearing more expensive debts first
• Compound interest calculator – for comparing with investing the extra
• Net worth calculator – for watching your home equity grow
• Retirement calculator – for retiring without a mortgage

Try a few extra amounts here, and pick the one you can keep paying every month.

More money calculators

Your currency and scene come with you to each one.

Clear the expensive debts first, then send the extra to your mortgage.