Mortgage Payoff Calculator

Calculate how extra payments or biweekly payments can save on interest and shorten your mortgage term.

Find values in your monthly statement.

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Your Payoff Analysis

Enter your mortgage details to see when you'll pay it off and how much you can save.

Complete User Guide

What is Mortgage Payoff?

Mortgage payoff refers to paying off your home loan before the end of its original term. By making extra payments — whether monthly, yearly, or as a lump sum — you reduce the principal balance faster, which means less interest accumulates over time. This can save you tens of thousands of dollars and free you from mortgage debt years earlier than planned.

Total Savings = Original Interest − Payoff Interest

The key principle is simple: every extra dollar you pay goes directly toward reducing your principal balance. Since interest is calculated on the remaining balance, a lower balance means less interest on every future payment — creating a compounding savings effect over the life of the loan.

Payoff Strategies

Extra Monthly Payments

Adding a fixed amount to your monthly payment is the most common strategy. Even $200-$500 extra per month can save $50,000-$100,000+ in interest and cut 5-10 years off a 30-year mortgage. This method is easy to budget for and provides consistent acceleration.

Biweekly Payments

Instead of 12 monthly payments, you pay half your payment every two weeks. With 52 weeks per year, this results in 26 half-payments — the equivalent of 13 full payments instead of 12. That extra payment each year can shave 4-6 years off a 30-year loan with minimal effort.

Lump Sum Payments

One-time payments from bonuses, tax refunds, or inheritance can create a dramatic reduction in your loan balance. A single $10,000 lump sum early in a 30-year mortgage can save over $20,000 in interest. The earlier you make the lump sum, the greater the impact.

Combined Strategy

The most powerful approach combines all strategies: make extra monthly payments, switch to biweekly, and apply windfalls as lump sums. Used together, you could pay off a 30-year mortgage in 15-18 years and save hundreds of thousands in interest.

How to Use This Calculator

This calculator offers two modes depending on what information you have:

Mode 1: Know Remaining Term

  1. Enter your original loan amount
  2. Select the original loan term (15, 20, or 30 years)
  3. Enter the interest rate
  4. Enter the remaining years and months
  5. Choose a repayment option

Mode 2: Don't Know Term

  1. Enter your unpaid principal balance (from statement)
  2. Enter your current monthly payment amount
  3. Enter the interest rate
  4. Choose a repayment option
  5. Click Calculate to see your payoff date

Understanding Your Results

Payoff Date & Time

The blue header shows exactly when your mortgage will be fully paid off and how many years/months remain. With extra payments, this date moves significantly closer.

Interest Savings

The green card shows total interest dollars saved compared to the original repayment plan. This is often the most impactful number — on a $300,000 loan, savings can easily exceed $100,000.

Time Savings

The purple card shows how many years and months earlier you'll be mortgage-free. This represents freedom from monthly payments and the ability to redirect that money to savings, investments, or lifestyle.

What If Scenarios

The scenarios table compares different extra payment amounts so you can see the impact of paying $100, $200, $500, or $1,000 extra per month — helping you choose the strategy that fits your budget.

Extra Payment Impact ($300,000 at 6.5%, 30 Years)

See how different extra payment amounts affect your loan payoff.

Extra/Month New Payoff Time Saved Interest Saved
$0 (Normal)30 years——
$10025 yrs 8 mos4 yrs 4 mos$66,444
$20022 yrs 5 mos7 yrs 7 mos$113,638
$50017 yrs 3 mos12 yrs 9 mos$207,948
$1,00012 yrs 9 mos17 yrs 3 mos$278,869
Biweekly25 yrs 3 mos4 yrs 9 mos$72,360

Important Notes

  • Check your loan documents for prepayment penalties before making extra payments. FHA, VA, and most conventional loans do not have prepayment penalties.
  • When making extra payments, specify that they should be applied to the principal balance — not held for future payments or applied to escrow.
  • This calculator assumes a fixed-rate loan. Adjustable-rate mortgages (ARMs) will produce different results as the rate changes over time.
  • The 'Don't Know Term' mode calculates your remaining term based on current balance, payment, and rate — it may differ slightly from your actual remaining term.

Why Pay Off Early

There are many reasons accelerating your mortgage payoff makes financial sense:

  • Save tens or hundreds of thousands in interest
  • Achieve complete financial freedom from debt
  • Build home equity faster for future borrowing power
  • Reduce financial stress and increase peace of mind
  • Redirect mortgage payments to retirement savings
  • Protect against housing market downturns

When to Prioritize Other Goals

Early payoff isn't always the best use of extra money:

  • Pay off higher-interest debt first (credit cards, student loans)
  • Build an emergency fund of 3-6 months' expenses
  • Max out employer 401(k) matching contributions
  • Consider investing if your expected return exceeds your mortgage rate
  • Keep liquidity for upcoming major expenses
  • Factor in the mortgage interest tax deduction benefit

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