Mortgage Payoff Calculator
Calculate when your mortgage will be paid off with extra payments and see how much you can save
Current Mortgage Details
The outstanding principal balance
Annual percentage rate (APR)
Time left on the mortgage
How often you make payments
Extra Payment Options
Additional amount added to each payment
Single large payment toward principal
Payoff Analysis
Enter your mortgage details to see the payoff analysis
💡 Payment Strategy Tips
Try adding even $50-100 extra per month to see significant savings!
Consider bi-weekly payments (26 payments/year) instead of monthly for additional savings.
Example Scenario
Typical 30-Year Mortgage
Balance: $300,000
Interest Rate: 6.5%
Term: 30 years remaining
Monthly Payment: ~$1,896
With $200 Extra Monthly
Time Saved: ~7 years, 9 months
Interest Saved: ~$89,000
New Payoff: ~22 years, 3 months
Extra Payment Strategies
Extra Monthly Payment
Add a fixed amount each month
Most consistent savings method
Bi-weekly Payments
Pay half monthly amount every 2 weeks
26 payments = 13 months worth
Lump Sum Payment
One-time large payment
Use tax refunds, bonuses, windfalls
Benefits of Extra Payments
Reduce total interest paid significantly
Pay off mortgage years earlier
Build equity faster
Guaranteed return equal to interest rate
Achieve debt-free homeownership sooner
Understanding Mortgage Payoff Strategies
How Extra Payments Work
When you make extra payments on your mortgage, the additional amount goes directly toward the principal balance. This reduces the amount on which interest is calculated for future payments, creating a compounding effect that accelerates payoff.
Payment Frequency Impact
- •Monthly: Standard 12 payments per year
- •Bi-weekly: 26 payments = 13 months worth annually
- •Weekly: 52 payments = accelerated payoff
Calculation Method
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
- P: Principal balance
- r: Periodic interest rate
- n: Total number of payments
Key Insight: Extra payments reduce the principal (P), which decreases the total interest over the life of the loan exponentially.
Important Considerations
Before Making Extra Payments:
- • Pay off higher-interest debt first
- • Ensure adequate emergency fund
- • Consider employer 401(k) match
- • Evaluate investment alternatives
When Extra Payments Make Sense:
- • High mortgage interest rate
- • Approaching retirement
- • Peace of mind from debt freedom
- • Guaranteed return at interest rate