Payoff Calculator
Mortgage Payoff & Extra Payment Calculator
A little extra toward principal can go a long way. This extra payment calculator shows how a recurring monthly prepayment, a one-time lump sum or both could move up your payoff date and reduce the total interest you'll pay over the life of your mortgage.
Interactive tool
Model your early payoff
Because interest is charged on the outstanding balance, every dollar of principal you retire early stops generating interest for the rest of the loan. Enter your numbers below to see that effect compound.
Payoff with extra payments
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Estimated interest saved
- Regular payment (P&I) —
- Time saved —
- New payoff —
- Total interest, no extras —
- Total interest, with extras —
Estimates for planning only, not a loan offer, rate quote or commitment to lend. Actual terms depend on credit, income, property, program guidelines and underwriting. Check with your servicer how extra payments are applied to principal.
How to use it
Testing a prepayment strategy
Describe the loan
Enter the loan amount, interest rate and term. For an existing mortgage, use your current balance and the years remaining.
Add a monthly extra
Type in an amount you could comfortably add every month, even a modest one.
Try a one-time payment
Model a bonus, tax refund or other windfall applied to principal as a single lump sum.
Compare strategies
Switch between monthly only, lump sum only and a combination to find the approach that fits your budget.
Inputs explained
What each input represents
- Loan amount — the principal you're paying down; use today's balance if the loan is already underway.
- Interest rate — the note rate on your mortgage, found on your statement or closing documents.
- Term — the remaining repayment period that the scheduled payment is based on.
- Extra monthly payment — an added amount applied to principal with each regular payment.
- One-time payment — a single lump sum applied directly to principal.
The calculator assumes every extra dollar goes to principal. When you send a prepayment, confirm with your servicer that it's applied that way rather than held toward a future payment.
Understanding results
Months saved, interest saved and your new payoff date
Months saved shows how much sooner the loan reaches zero compared with the original schedule, while interest saved totals the interest you avoid. The new payoff date pulls those together into a target you can put on a calendar. Your required monthly payment doesn't change; the loan simply ends earlier.
These figures are estimates that ignore escrow. Property taxes, homeowners insurance, HOA dues and PMI vary and continue as long as they apply, though building equity faster may help you reach the point where conventional PMI can generally be removed. Nothing here is a loan offer or financial advice.
Before prepaying, many households first build an emergency fund and pay down higher-interest debt. It's also worth checking whether a lower rate through a refinance would accomplish more, which you can test with the refinance calculator.
Build a payoff plan with a loan officer
Sterling Smith can review your current loan, check for prepayment terms and compare an extra-payment plan with refinancing so you pick the path that saves the most. Start with no hard credit pull.
Plan My PayoffAnswers
Extra payment questions
Is there a penalty for paying my mortgage off early?
Most modern residential mortgages carry no prepayment penalty, but it's worth confirming in your note or with your servicer. If you're shopping for a new loan, ask about prepayment terms upfront.
Are biweekly payments the same as an extra payment?
A true biweekly plan results in the equivalent of one additional monthly payment each year, which works like a recurring extra. You can model the same effect by dividing one payment by twelve and entering it as a monthly extra.
Does paying extra lower my monthly payment?
Usually not. Prepayments shorten the loan rather than reduce the required amount. Some servicers offer a recast that re-amortizes the balance after a large lump sum, so ask yours if that's your goal.
Is it better to pay extra early or later in the loan?
Extra payments made early save the most, because they remove principal that would otherwise accrue interest for many years. Later prepayments still help, just with a smaller effect.
Should I pay extra principal or invest the money instead?
It depends on your rate, tax situation, risk tolerance and other goals. Paying down the mortgage offers a guaranteed return equal to its rate. For a broader look, consider our mortgage consulting service and your financial advisor.
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