Mortgage Payoff Calculator

How to use this mortgage payoff calculator

Use your latest mortgage statement for the most useful estimate.

Mortgage Payoff Calculator features

What extra mortgage payments change

Extra payments reduce the loan balance earlier, which means less interest accrues in later months.

This calculator keeps the regular scheduled payment the same. Extra payments accelerate payoff instead of recasting the payment.

If your loan servicer requires a special instruction to apply extra money to the loan balance, follow that process so the payment is not treated as a future scheduled payment.

Mortgage payoff assumptions

The calculator simulates the mortgage month by month.

Mortgage payoff calculator FAQ

Check an extra-payment plan before committing

An extra payment helps only when the servicer applies it to principal. Review your statement or ask the servicer how to label principal-only payments. Some systems hold partial payments or advance the next due date instead. Keep making the normal scheduled payment unless the servicer confirms a different arrangement.

Compare the interest saved with what the extra cash gives up. Paying principal creates a certain reduction in future mortgage interest, but the money becomes home equity and is harder to reach. Before accelerating the loan, consider emergency savings, higher-rate debt, employer retirement matches, and near-term expenses. A strong payoff plan should not leave the monthly budget fragile.

Check the note and current statement for the exact balance, interest rate, maturity date, and any prepayment terms. The CFPB explains mortgage prepayment penalties and notes that they do not apply to every loan or every extra principal payment. This calculator does not add a penalty, late fee, or servicing rule.

Run the plan at an amount you could maintain during an ordinary month, then test occasional lump sums separately. The projected payoff date assumes every extra payment arrives as entered. A missed extra payment does not make the mortgage delinquent when the required payment is still made, but it will move the projected payoff date later.

Finally, compare the schedule with your goal. If you mainly want a lower required payment, extra principal usually does not change that payment unless the lender approves a recast. If you are considering a new rate or term, compare the result with the mortgage refinance calculator and include closing costs rather than comparing rates alone.

Keep the confirmation for every extra payment and compare the next statement with the projected principal balance. Small differences can come from daily interest, payment timing, escrow activity, or a different application date. Large or unexplained differences belong with the servicer, not in a revised calculator assumption. If the loan is close to payoff, request an official payoff statement because the online balance may omit interest through the payoff date and recording or release fees.

An escrow shortage or a change in taxes and insurance can raise the total amount withdrawn each month even when the principal-and-interest payment is fixed. Extra principal does not pay future escrow bills. Keep those costs in the household plan, and compare principal balances—not total bank withdrawals—when checking whether the payoff schedule is on track.