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Mortgage Payoff Calculator

Finance

Enter your mortgage balance and interest rate, then the years left or your monthly payment. Add extra payments to see when your house is paid off, how much sooner that is and the interest you save.

I know my

The principal you still owe, as shown on your latest mortgage statement.

The yearly rate of your loan, for example 6.5.

The remaining term, for example 25 or 27.5. A new 30-year loan has 30 years left.

Added to each regular payment and applied to principal.

Added to every 12th payment, for example a bonus or a tax refund.

Paid now, before your next regular payment. It lowers the balance before the next month's interest is charged.

Use a period for decimals, like 12.5. Commas for thousands are fine. The result updates as you type.Decimals with a period, like 12.5

Your entries stay on your device. The math runs right in your browser.

Result: Interest you save

$97,618.12

With your extra payments the loan is paid off in 22 years and 1 month instead of 30 years. You save 7 years and 11 months and $97,618.12 in interest.

  • Payoff time with extra payments: 22 years and 1 month
  • Payoff time without extra payments: 30 years
  • Time saved: 7 years and 11 months
  • Total interest with extra payments: $221,243.10
  • Total interest without extra payments: $318,861.22
  • Regular monthly payment (principal and interest): $1,580.17

Amortization schedule by year, with and without extra payments

Balance by year
YearInterest paidPrincipal paidBalance with extra paymentsBalance without extra payments
1$16,094.92$5,267.12$244,732.88$247,205.69
2$15,742.17$5,619.87$239,113.01$244,224.23
3$15,365.80$5,996.24$233,116.77$241,043.10
4$14,964.22$6,397.82$226,718.95$237,648.93
5$14,535.74$6,826.30$219,892.65$234,027.44
6$14,078.58$7,283.47$212,609.18$230,163.42
7$13,590.79$7,771.25$204,837.93$226,040.61
8$13,070.33$8,291.71$196,546.22$221,641.69
9$12,515.02$8,847.02$187,699.21$216,948.17
10$11,922.52$9,439.52$178,259.69$211,940.32
11$11,290.34$10,071.70$168,187.98$206,597.07
12$10,615.82$10,746.22$157,441.76$200,895.99
13$9,896.12$11,465.92$145,975.84$194,813.09
14$9,128.23$12,233.81$133,742.03$188,322.80
15$8,308.91$13,053.13$120,688.90$181,397.85
16$7,434.72$13,927.32$106,761.58$174,009.13
17$6,501.98$14,860.06$91,901.51$166,125.56
18$5,506.77$15,855.27$76,046.24$157,714.02
19$4,444.91$16,917.13$59,129.12$148,739.15
20$3,311.94$18,050.10$41,079.02$139,163.21
21$2,103.10$19,258.95$21,820.08$128,945.95
22$813.29$20,548.75$1,271.32$118,044.42
23$6.89$1,271.32$0.00$106,412.80
24$0.00$0.00$0.00$94,002.18
25$0.00$0.00$0.00$80,760.41
26$0.00$0.00$0.00$66,631.80
27$0.00$0.00$0.00$51,556.98
28$0.00$0.00$0.00$35,472.57
29$0.00$0.00$0.00$18,310.96
30$0.00$0.00$0.00$0.00

Step by step

$318,861.22 − $221,243.10 = $97,618.12 saved in interest

  1. The regular payment that repays $250,000.00 over the 30 years left is $1,580.17, from M = B · i / (1 − (1 + i)^−n) with i = 6.5% / 12.
  2. Without extra payments the loan runs 30 years and costs $318,861.22 in interest.
  3. With your extra payments applied to principal it is paid off in 22 years and 1 month and costs $221,243.10 in interest.
  4. The difference is 7 years and 11 months and $97,618.12 in interest.

Formula

M = B · i / (1 − (1 + i)−n)
starting balance = B − one-time extra
interest in a month = balance · i
new balance = balance + interest − payment − extra
interest saved = interest without extras − interest with extras
M
the regular monthly payment of principal and interest
B
the current loan balance
i
the monthly interest rate: the yearly rate divided by 12 and by 100
n
the number of monthly payments left, which is the years left times 12
one-time extra
the lump sum you pay now, before the first regular payment. It comes off the balance first, so the first month's interest is charged on the smaller balance
extra
the extra money paid together with a regular payment that month: the monthly extra, plus the yearly extra in every 12th month. The one-time amount is not part of it

How it works

On a fixed-rate mortgage, the lender charges interest every month on what you still owe: the balance times the yearly rate divided by 12. Your payment covers that interest first and the rest reduces the balance. Early on most of the payment is interest, as the Consumer Financial Protection Bureau explains. An extra payment is different, because all of it reduces the balance. A smaller balance means less interest the next month, so more of every later payment goes to principal. That chain reaction is why a modest extra amount can take years off the loan.

The calculator works out your regular payment from the balance, the rate and the years left, using M = B × i / (1 − (1 + i)^−n), where i is the monthly rate and n the number of months. Or you can type the principal-and-interest payment from your statement. It then plays the loan forward month by month, once as it stands and once with your extras: an amount with every payment, an amount with every 12th payment, and a lump sum paid now. For a $250,000 balance at 6.5% with 30 years left, the payment is $1,580.17. An extra $200 a month ends the loan after 22 years and 1 month, saves 7 years and 11 months, and saves $97,618 in interest.

A few things decide how well this matches your real loan. Payments here cover principal and interest only, so leave out taxes, insurance and PMI. Interest is not rounded to cents each month, so your lender's schedule can differ by a few dollars over the life of the loan. Check that your servicer applies the extra money to principal, and read your note for a prepayment penalty, which mostly matters when a large amount is paid at once. Switching to a lower rate is another way to save, which the refinance calculator compares; for any other fixed loan, use the loan calculator.

The formula

The first line makes the payments exactly pay off the balance after n months. At 0% interest it becomes B / n. The month-by-month steps then follow the usual convention: interest is charged on the balance at the start of the month, and the payment is made at the end of it. A one-time extra payment is made before the first payment: it comes off the starting balance, so even the first month's interest is charged on the smaller balance.

The loan ends in the first month in which the payment and the extras cover the balance plus that month's interest, so the last payment is smaller than the others. The interest saved is the total interest of the plain schedule minus the total interest of the schedule with extras.

Example

You owe $250,000 at 6.5% with 30 years left. How much do you save by paying $200 extra every month?

  1. The regular payment is $1,580.17 a month. Without extras the loan runs 30 years and costs $318,861.22 in interest.
  2. Paying $200 more every month ends it in 22 years and 1 month, with $221,243.10 in interest.
  3. That saves 7 years and 11 months and $97,618.12: the lender is paid that much less in interest in return for your extra $200 a month.

With your extra payments the loan is paid off in 22 years and 1 month instead of 30 years. You save 7 years and 11 months and $97,618.12 in interest.

Load this example into the calculator

Frequently asked questions

How much does an extra principal payment reduce my mortgage?

The balance drops by the full amount you add, and every later month's interest is smaller. On $250,000 at 6.5% with 30 years left, $100 extra a month saves $58,860 and 4 years 8 months, $200 saves $97,618 and 7 years 11 months, and a single $10,000 payment now saves $52,845 and 3 years 3 months.

What is the 2% rule for mortgage payoff?

It is a popular rule of thumb, not an official rule: add 2% of your regular payment as extra principal each month. On a $1,580.17 payment that is about $32 a month. On the $250,000 example loan it saves roughly $22,000 and about 1 year 8 months. Type your own extra amount to test it.

How do I pay off a 30 year mortgage, or a $200,000 mortgage, in 5 years?

Your payment must be the one that repays the balance in 60 months. Choose "Years left" and enter 5. For a $200,000 balance at 6.5% the payment is $3,913.23 a month, and for $250,000 it is $4,891.54. Few budgets stretch that far, so a mix of a larger monthly payment, a yearly lump sum and a refinance to a shorter term is more common.

Should I tell my lender to apply extra money to principal?

Yes. Mark the extra amount as principal only, in the payment portal or on the check, and confirm on the next statement that the balance dropped by that amount. Otherwise a servicer may treat it as an advance on the next installment, which does not lower the balance right away.

Is there a penalty for paying off a mortgage early?

Some loans have a prepayment penalty, agreed at closing. The Consumer Financial Protection Bureau says it usually applies when the whole balance is repaid early, within the first three to five years, for example in a sale or a refinance, and that small extra payments normally do not trigger it. Look in your loan documents or ask your servicer.

How do biweekly payments work?

Paying half your monthly payment every two weeks makes 26 half payments, which equal 13 full payments a year, one more than the 12 you owe. You can model that here by entering your monthly payment as the extra payment once a year. On the example loan it ends the mortgage in 24 years and 4 months and saves about $69,987.

How do I find the exact amount to pay off my mortgage today?

Ask your servicer for a payoff statement. Under federal rules (12 CFR 1026.36(c)(3)), a servicer must send an accurate statement of the total outstanding balance as of a date you specify within seven business days of your written request. It adds interest accrued since your last payment and any fees, so it differs from the balance on the statement.

What if I do not know how many years are left on my loan?

Choose "Monthly payment" instead and type the principal-and-interest part of your payment from your statement, with the current balance and rate. The calculator finds the number of months the loan will last at that payment. A payment that barely covers the interest would take over 100 years, which the calculator reports as an error.

Does the payment include taxes, insurance and PMI?

No. The calculator uses principal and interest only. Your monthly mortgage bill may also include property taxes, homeowners insurance and mortgage insurance in an escrow account, and those do not reduce the loan. Subtract them from the bill before typing a payment.

Is it better to pay off my mortgage early or to invest the money?

It depends on your interest rate, your other debts, your emergency savings and how much risk you accept. Paying down a mortgage is an effectively risk-free return equal to your loan rate, while investments can earn more or less. For advice that fits your situation, talk to a financial advisor.

Last updated: Responsible editor: Jared Alan
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