Mortgage Payoff Calculator
See when your mortgage will be paid off and how much interest an extra monthly payment can save you.
How the mortgage payoff calculator works
Enter your current loan balance, interest rate and the principal and interest part of your monthly payment. Add an extra amount to see the effect. The calculator steps through your loan month by month, adds interest on the balance, subtracts your payment and counts the months until the balance reaches zero.
It leaves out property tax, home insurance and PMI, because those do not reduce your loan balance. Use the principal and interest figure from your mortgage statement.
The method
Example: With a $250,000 balance at 6.5% and a $1,800 payment, adding $200 a month pays the mortgage off in 17 yr 6 mo instead of 21 yr 7 mo. That saves $46,529.14 in interest.
Check with your lender that extra payments go to principal and that there is no prepayment penalty.
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Frequently asked questions
How can I pay off my mortgage faster?
Pay extra each month, make one extra payment a year, switch to biweekly payments or refinance to a shorter term. Make sure extra money is applied to principal.
Do extra mortgage payments really save interest?
Yes. Extra principal lowers your balance, so less interest builds up every month after that.
Should I pay off my mortgage early?
It depends on your interest rate, other debts, emergency savings and investment options. A higher rate makes early payoff more attractive.
Does this include taxes and insurance?
No. Only principal and interest are used because taxes and insurance do not reduce the loan balance.
What if my payment is too low?
If your payment does not cover the monthly interest, the balance never falls and the calculator will tell you to enter a higher payment.
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