A familiar situation
You may have room in your budget for an extra principal payment but want to know whether it matters. Compare payoff time and interest with and without that extra amount before committing to a new monthly plan.
How to use this calculator
- Enter amount financed, annual interest rate, repayment term and the remaining inputs.
- Select Calculate to see the answer and its breakdown.
- Keep a scenario, change an input and compare the results.
Use consistent units and check the assumptions below before applying the result.
How mortgage payoff is calculated
The schedule applies interest to the remaining balance each month before subtracting the scheduled payment and any extra principal. Extra payments are assumed to have no prepayment penalty. Formula: Each month: interest = balance × monthly rate; new balance = balance + interest − payment − extra. Use the displayed details to inspect the intermediate amounts and replace example assumptions with terms from your own quote or records.
Each month: interest = balance × monthly rate; new balance = balance + interest − payment − extra.Adding $100 to a $200,000, 6% mortgage payment can shorten the payoff and reduce total interest.
Assumptions & useful context
The final payment may be smaller; extra payments are applied directly after monthly interest.
Financial projections use your assumptions. Actual returns, lender terms, fees and tax rules can differ; these results do not guarantee a future outcome.
Frequently asked questions
Mortgage Payoff Calculator: what does the result include?
The model applies each extra amount to principal after that month’s interest. Check your loan terms for payment instructions and prepayment restrictions.
Mortgage Payoff Calculator: which assumptions matter most?
The estimate assumes monthly timing and a fixed rate. Daily interest, payment dates, rounding and fees can shift the final installment.