Mortgage Payoff Calculator
Calculate your remaining mortgage payoff timeline, total interest under your current payment schedule, and exact interest and years saved by making additional monthly or one-time principal payments.
Current Balance & Extra Principal Inputs
Time Saved: 6.2 Years (75 Months)
Iterative Monthly Amortization & Principal Reduction
Monthly Interest = Remaining Balance ร (Annual Rate รท 12) | Principal Paid = Scheduled P&I + Extra Payment โ Monthly Interest- Each month, interest is calculated on the current remaining loan balance.
- Any one-time lump-sum payment reduces principal in Month 1, immediately lowering interest accrual in every remaining month.
- Total Interest Saved = Baseline Remaining Interest โ Accelerated Schedule Interest.
Step-by-Step Worked Example
Calculation Steps:
- Baseline Schedule: 256 months (21 yrs 4 mos) remaining and $218,895.98 in total remaining interest
- Accelerated Schedule: 189 months (15 yrs 9 mos) and $153,759.29 in total interest
- Savings: 67 months (5 yrs 7 mos) shaved off the loan and $65,136.69 in interest saved
How to Use This Calculator
- 1Enter your current remaining mortgage principal balance and annual interest rate.
- 2Enter your current monthly Principal & Interest (P&I) payment (exclude property tax and insurance escrow).
- 3Enter any recurring additional monthly principal payment and/or a one-time lump-sum principal payment.
Assumptions & Limitations
- Your current monthly payment must exceed the first monthโs interest accrual (Balance ร Rate รท 12) to amortize the loan.
- Assumes your mortgage servicer applies extra payments 100% toward principal reduction without prepayment penalties.
Frequently Asked Questions
Should I include my escrow payment in the Current Monthly Payment field?
No. Enter only the Principal and Interest (P&I) portion of your monthly mortgage statement. Property taxes and homeowners insurance held in escrow do not reduce your loan balance.
Is it better to make a one-time lump sum payment or extra monthly payments?
A lump-sum payment saves more interest per dollar if applied immediately because it reduces the principal balance earlier in the loan lifecycle, but consistent extra monthly payments also compound into substantial time and interest savings.
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