Mortgage Payoff Calculator
This tool is different from other mortgage payoff calculators as it handles all of your loans simultaneously. It will track your primary residence, rental properties, etc. Simply enter the current balance (with interest), the interest rate (APR) and how long until you reach the end of the loan period, add any additional amount you are planning on making toward the loan and adjust the slider below to view the changing amounts. The calculations run entirely within your web browser and do NOT upload or store any information.
By Joey van Diest, founder and editor Updated
Summary
Example- Total balance
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- Total monthly payment
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- Interest saved by extra payments
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Add a loan above to see its full payoff detail.
How the calculator works
monthly rate = annual rate ÷ 12
standard payment = balance × rate × (1 + rate)^months ÷ [(1 + rate)^months − 1]
each month: interest = balance × rate; principal = payment + extra − interest; balance −= principal
Enter in a loan's present amount owed to you (the "outstanding" or "current" balance), its interest rate (in percent) and how many months you have until your last payment, then enter a regular monthly payment amount, as this will be computed via the same fixed-regular-payment amortization formula that all lenders use. Next, add an additional month-to-month payment, a single one-time payment, or BOTH, and the loan is simulated by applying these payments on top of the regular payment for each month. The simulator shows you exactly what date it was paid off completely, how much total interest was charged during the life of the loan, and how much of that total interest charge was avoided through application of those additional payments.
Example: you have a mortgage for $300,000 at an annual rate of 6.5%, and there are still 360 monthly payments left (over the next 30 years). Your monthly payments would be $1,896, and you'd pay $382,633 in total interest by the time you've paid off your loan after 30 years. By adding $200 more per month on top of your regular monthly payment, your total amount of interest paid decreases to $279,185, which results in a savings of $103,449. In addition, you'll also finish paying off your loan 7 years sooner than planned.
Why extra payments work the way they do
Every fixed loan pays a portion of each payment toward interest, and the remainder toward principal. Since an early loan has the largest amount owed, most of your payment will go toward interest and least of all toward paying down the amount owed. As time progresses and the amount owed decreases, less of your monthly payment will be going toward interest and more of your monthly payment will be used to reduce the amount owed. The reason the same dollar saved early reduces the total cost of the loan by more than if it were added later is because you are eliminating years' worth of additional interest on that dollar.
Extra payments don't change your required monthly payment; that only changes if you specifically ask your lender for a recast. What they do is shorten the loan and cut total interest, at a return that's mathematically fixed at your loan's own interest rate, guaranteed rather than market-dependent. Worth comparing against what the same money might earn invested instead, using the compounding calculator. Since a mortgage balance is usually the largest single line in the net worth tracker, and a changed monthly payment is worth reflecting in the budget & cash flow tracker, both are natural next stops once you've settled on a plan here.
Frequently asked questions
- Why does this ask for my current balance instead of the original loan amount?
- To know exactly how much you currently owe today, based on your last statement, you need to understand that it will be different from the total of your original loan amount since you've paid off a portion over time. The reason this number is important is because when you calculate the interest saved by making one extra payment, the exact same extra payment in terms of dollar amount saves a lot more interest if there are 25 years remaining on the loan compared to having just 5 years remaining. Therefore, using both your actual current loan balance and actual loan term (as opposed to estimates) will ensure that the potential interest savings calculated for each additional payment are accurate.
- Does making an extra payment lower my required monthly payment?
- No, and this is the single most common misunderstanding about extra payments. Your monthly payments stay the same unless you ask for a recast. Extra payments cut interest, not the payment amount itself.
- What's the difference between the extra monthly amount and the one-time extra payment?
- Monthly is for how much money you will add to each of your payments from now until you are paid off. One time is when you pay off a portion of the loan (once). If you know that you can keep adding extra money to your loan payments each month then a Monthly makes sense. A One Time payment works best if you receive some money in the future and don't want it just sitting there, so you use the money to reduce your loan.
- What does the biweekly payment option actually do?
- The bi-weekly plan is a way to make smaller payments (half your normal) each pay period as opposed to one larger payment per month. When you divide 52 weeks by two, you get 26 periods where you will be making half payments; this amounts to 26 half-payments which equates to 13 full months as opposed to 12. In doing so, you only have to worry about making an additional payment approximately once a year, and since it's spread throughout the year, many people don't even know they made an extra payment.
- Should I pay extra on my mortgage or invest the money instead?
- This tool only answers one side of that question: how much a given extra payment saves in guaranteed interest, not what the same money might have earned invested instead. Extra payments return exactly your mortgage rate, with no risk. Investing can return more over time, but with real risk and no guarantee, especially over a shorter horizon. Run the numbers against the compounding calculator to compare the two directly rather than guessing.
- Will my lender charge me a penalty for paying extra?
- Usually not, but check your loan documents; some loans do carry a prepayment penalty. FHA loans, VA loans and any loan from a federally chartered credit union are prohibited by law from carrying one.
- Does this account for property taxes, insurance or PMI?
- No. All figures shown in this example are simply principal & interest (the amount of each monthly payment which goes toward reducing the outstanding loan balance) since property taxes & homeowners insurance are generally paid for via a separate monthly escrowed collection and therefore do not amortize; likewise, the effect of making extra payments on the pay-off date will be identical whether or not you include these costs.
- Can I track a rental property here too, not just my own home?
- Yes, every loan you add gets its own category. Primary residence, rental properties etc. You can track a rental mortgage the same way, and the summary and category breakdown below separate them out.
- Is my loan data private?
- Yes. Everything you enter is stored only in this browser's IndexedDB, on your device. There's no account, no sync between devices and no export yet, so clearing your browser data or switching devices loses everything entered here.
- Why doesn't this include a refinance comparison?
- Not built yet, but this might be added in the future.
- What does the "paid off so far" percentage measure?
- It compares your current balance against the balance you first entered. If you have been paying a mortgage for some time already, simply add it with today's actual balance, and the percentage will start counting from that point rather than from when you originally took out the loan.
Method and limitations
Every figure is principal and interest only, using the same fixed-payment amortization formula every mortgage lender uses, applied to the current balance, rate and remaining term you enter. Property taxes, homeowners insurance, PMI and any escrow account are not included, since they don't amortize and extra payments don't reduce them. This tool does not compare paying extra against investing the same money instead; it only computes what a given extra payment saves in guaranteed interest. Loans are stored only in this browser's local storage; there is no account, no sync between devices and no export yet, so clearing your browser data or switching devices loses everything entered here.
This tool runs entirely in your browser. Nothing you enter is sent to us or stored.
For general information and education only. This is not financial advice and not a recommendation to buy or sell anything. This tool is provided as is, with no warranty of accuracy: like any software it can contain errors, so always verify figures against your broker or the original source before acting on them. Trading and investing carry risk, including the risk of losing more than your initial outlay.
Spotted an error? Email [email protected] and it will be corrected. Maintained by Joey van Diest.