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Simple Calculators

Mortgage Payoff Calculator

How much sooner you pay off your mortgage, and the interest you save, with extra payments

Your Mortgage Today

Principal still owed, from your latest statement

Whole years left on your current schedule

Principal & interest only, without escrow.

Extra Payments

Added to principal every month

Optional; paid with your next payment

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All finance

Quick summary

Extra principal lowers the balance that interest is charged on, so a mortgage ends sooner and costs less. On a $250,000 balance at 6.5% with 30 years left, the scheduled payment is $1,580.17. Adding $200 a month pays it off in 22 yrs 1 mo — 7 yrs 11 mos sooner — and cuts total interest from $318,861.58 to $221,243.14, saving $97,618.44.

Reviewed by Simple Calculators TeamLast reviewed

For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.

How to use this calculator

  1. Enter your Current Balance ($) from your latest mortgage statement.
  2. Enter the Interest Rate (%) and the Years Remaining on your loan.
  3. Enter your Monthly Payment, P&I ($), or use the suggested scheduled payment.
  4. Add an Extra Monthly Payment ($), a One-Time Lump Sum ($), or both.
  5. Read the time saved, the new payoff time, and the interest saved against your current schedule.

Mortgage Payoff Formulas

Scheduled Payment

M=B×r1−(1+r)−nM = \frac{B \times r}{1 - (1 + r)^{-n}}
M
Monthly principal and interest payment
B
Current balance
r
Monthly rate: the annual rate ÷ 100 ÷ 12
n
Months remaining: years remaining × 12

Worked example

$250,000 left at 6.5% with 30 years remaining

Given
B = $250,000
r = 0.065 ÷ 12
n = 360
Calculation
M=250000×0.00541671−(1.0054167)−360M = \frac{250000 \times 0.0054167}{1 - (1.0054167)^{-360}}
Result
M ≈ $1,580.17 per month

Each Month With Extra Principal

Bk=Bk−1−(M+E−Bk−1×r)B_k = B_{k-1} - (M + E - B_{k-1} \times r)
B_k
Balance after month k
E
Extra monthly payment (plus any lump sum in month 1)
B_{k-1} × r
Interest charged that month

Worked example

Month 1 with $200 extra

Given
B_0 = $250,000
M + E = $1,780.17
Calculation
250000−(1780.17−1354.17)=250000−426.00250000 - (1780.17 - 1354.17) = 250000 - 426.00
Result
Balance $249,574.00 after month 1, versus $249,774.00 with no extra

Interest Minimum

M>B×rM > B \times r
B × r
Interest-only amount: a payment at or below this never reduces the balance

Worked example

The same $250,000 balance at 6.5%

Given
B = $250,000
r = 0.065 ÷ 12
Calculation
250000×0.06512=1354.17250000 \times \frac{0.065}{12} = 1354.17
Result
The payment must be more than $1,354.17

Frequently asked questions

How much sooner will extra payments pay off my mortgage?

It depends on your balance, rate, and how much extra you pay. Enter your current balance, interest rate, and principal and interest payment, then add an Extra Monthly Payment or a One-Time Lump Sum. The calculator runs both schedules month by month and shows the difference in payoff time and total interest.

Is it better to pay extra early in the loan?

In general, yes. Interest is charged on the remaining balance, so a dollar of principal paid early avoids interest for every remaining month. The same extra amount paid later in the loan still helps, but it saves less interest because fewer months remain.

What payment should I enter?

Enter only the principal and interest part of your monthly payment, not property tax or insurance held in escrow. Your statement usually shows the split. If you are unsure, the calculator suggests the scheduled payment for your balance, rate, and years remaining.

Why does the calculator say my payment is too low?

If the payment is at or below one month's interest on the balance (balance × annual rate ÷ 12), none of it reduces the principal and the loan never pays off. Check that you entered the principal and interest amount and the correct interest rate.

What should I check with my lender before paying extra?

Ask how extra payments are applied — you usually want them credited to principal rather than held toward the next payment — and whether your loan has a prepayment penalty. Results here are estimates for a fixed-rate loan and are not financial advice; whether paying down a mortgage early suits you depends on your wider finances.

Key terms

Extra Principal Payment
Money paid on top of the scheduled payment that goes straight to reducing the loan balance.
Lump Sum Payment
A single larger payment toward principal, such as from a bonus or savings.
Principal & Interest (P&I)
The part of a mortgage payment that repays the loan and its interest, excluding escrow for taxes and insurance.
Prepayment Penalty
A fee some loans charge for paying off principal early; check your loan documents.

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.