Mortgage Payoff Calculator
Calculate how extra payments can help you pay off your mortgage faster and save thousands in interest. See the impact of bi-weekly payments, extra monthly payments, and one-time payments.
Enter your mortgage details below to calculate potential savings
This comprehensive mortgage payoff calculator evaluates different mortgage payoff strategies, including one-time extra payments, periodic additional payments, biweekly repayments, and complete loan payoff scenarios. Our mortgage calculator tool calculates remaining payoff time, time differences, and interest savings across various repayment options.
Monthly Payment Formula
M = P × [r(1 + r)^n] / [(1 + r)^n - 1]
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of payments (years × 12)
Interest vs Principal
Each payment is split between:
- Interest: Balance × (Annual Rate ÷ 12)
- Principal: Payment - Interest
- New Balance: Old Balance - Principal
Early payments pay mostly interest; later payments pay mostly principal.
Practical Example: $300,000 Mortgage
Loan Details:
- • Principal: $300,000
- • Interest Rate: 6% annual
- • Term: 30 years
- • Monthly Payment: $1,799
With Extra $500/month:
- • Total Payment: $2,299
- • Time Saved: ~7 years
- • Interest Saved: ~$153,000
- • Payoff: 23 years vs 30 years
💡 Key Insight: An extra $500/month saves $153,000 in interest and 7 years of payments!
Smart Payment Strategies:
- ✓Apply tax refunds and bonuses as one-time principal payments
- ✓Round up monthly payments to the nearest $50 or $100
- ✓Set up automatic extra principal payments
- ✓Review and adjust strategy annually
Important Reminders:
- ℹSpecify extra payments go toward principal, not interest
- ℹKeep records of all extra payments made
- ℹCheck for prepayment penalties in your loan terms
- ℹReview your amortization schedule regularly