Mortgage Payoff Calculator

This calculator shows how making extra payments toward your mortgage principal reduces the total interest you pay and shortens the time until your home is paid off.

1. Find your current balance on your most recent mortgage statement.
2. Enter your interest rate from your loan documents or statement.
3. Enter the remaining term. If you started with a 30-year loan 3 years ago, enter 27 years.
4. Enter an extra monthly payment. Even $100-$200 extra per month can save tens of thousands of dollars over the life of the loan.

The comparison table shows your standard payoff timeline side by side with the accelerated timeline, along with total interest and time saved.

Standard monthly payment:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where P = balance, r = monthly rate (annual / 12), n = remaining months.

Effect of extra payments:

Every extra dollar paid goes directly to principal, which reduces the balance used to calculate next month's interest. This snowball effect means early extra payments have the biggest impact.

Example: $280,000 balance, 7%, 27 years remaining. Standard payment = $1,900/month, total interest = $334,226. Adding $200/month extra cuts the term by 4 years 5 months and saves $57,847 in interest.

Optimal strategy: Make extra payments as early in the loan as possible. The interest saved on principal removed in year 1 compounds over the full remaining term.