EstimatorMortgage Payoff Calculator
Start from the mortgage you already have: your balance, rate and time left — then see your payoff date, and how much sooner extra payments get you there.
How it works
Your required monthly payment is worked out from the balance, rate and time remaining, using the standard amortization formula. Extra payments — monthly or one-time — go straight to principal, so the balance falls faster, less interest is charged each month, and the loan ends early. The calculator runs the schedule twice: once on the required payment alone, once with your extra payments, and reports the difference in time and interest.
Formula & worked example
Formula: The loan is simulated month by month: each month, interest = balance × (annual rate ÷ 12), and the rest of your payment — plus any extra monthly amount or lump sum — reduces the balance until it reaches zero.
Worked example: A $280,000 balance at 6% with 25 years left needs $1,804.04 a month and racks up $261,213 of interest. Add $200 a month and the loan dies in 241 months instead of 300 — 4 years 11 months sooner — with interest down to $201,882, a saving of $59,331.
When to use this
- You already have a mortgage and want your real debt-free date from today's balance, not the date on the original paperwork.
- A bonus, inheritance or tax refund could go to the mortgage and you want its exact effect before deciding.
- You are a few years in and curious what a modest monthly extra does over the remaining term.
- You want to compare paying extra against refinancing, starting with what extra payments alone achieve.
How to use it, step by step
- Enter the current balance from your latest statement, not the amount you originally borrowed.
- Enter your rate and the years left on the loan.
- Add a monthly extra if you pay ahead regularly.
- Optionally add a one-time lump sum and the month it will land.
- Read the new payoff date against the on-schedule date, and the interest saved between them.
What the inputs mean
| Input | What it is | Typical values |
|---|---|---|
| Current balance | What the mortgage still owes today | From the latest statement or servicer app |
| Interest rate | Your loan's fixed annual rate | Recent years roughly 3–8% depending on when you borrowed |
| Years left | Time remaining on the loan, not the original term | A 30-year loan five years in has 25 left |
| Extra payment (per month) | Added to principal every month | $100–$300 moves payoff dates by years on mid-size loans |
| One-time payment and month | A lump sum and which monthly payment it rides with | Bonuses, refunds, sale proceeds — earlier months save more |
Another worked example
You owe $210,000 at 6% with 22 years left, and you add $200 a month plus a $5,000 lump sum in month 18. The required payment is $1,434.46. On schedule the loan runs 264 months and costs $168,696.47 of interest; with the extras it ends in 199 months — 65 months (5 years 5 months) early — and interest falls to $119,440.46, saving $49,256.01.
Frequently asked questions
How much faster does $200 a month pay off a mortgage?
On a $280,000 balance at 6.5% with 27 years left, an extra $200 a month ends the loan roughly 5 years early and saves tens of thousands in interest. Your exact figures are above — try different amounts to see the trade-off.
Should I pay extra on my mortgage or invest instead?
Paying extra earns a guaranteed return equal to your mortgage rate (6.5% above), with zero risk. Investing may return more on average but is not guaranteed. Many people split the difference — and always capture any employer retirement match first.
Is one extra payment a year as good as monthly extras?
Close, but monthly extras win slightly because they cut the balance — and therefore the interest charged — sooner. One extra payment a year is still far better than none.
Does paying extra change my required monthly payment?
No. Your required payment stays the same; extra payments shorten the loan instead. If you want a lower required payment, ask your lender about recasting after a large lump sum.
🔄 Would refinancing beat extra payments?
The Refinance Calculator compares your current loan with a new rate and shows the break-even month.
When does a lump sum do the most good, early or late?
Early, and it is not close. A lump sum removes principal, and every month after that charges interest on a smaller balance — so a lump in month 12 skips years of interest charges, while the same lump in the final year skips almost none. Use the month field above to run your lump at two different dates and watch the interest saved shrink as you push it later.
Do I need to tell my servicer how to apply extra payments?
Yes. Mark extra money as principal-only, in writing or in the payment portal's principal field — otherwise some servicers apply it to the next month's payment, which advances your due date but barely touches the balance or the interest. Check the following statement: the balance should drop by the full extra amount on top of the scheduled principal.