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Mortgage Payoff Calculator
Find out exactly when your mortgage will be gone. Enter your balance, rate, remaining term and an extra monthly amount, then press Calculate to see your new payoff date and the interest you save.
Written by TopicDrill Editorial Team·Updated June 2026
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How the mortgage payoff calculator works
First the tool derives the scheduled payment that would clear your balance over the remaining term. Then it simulates two loans: one paying only that scheduled amount, and one paying the scheduled amount plus your extra contribution. It tracks each balance month by month until both reach zero.
The difference between the two payoff dates is the time you save, and the difference in total interest is the money you save. The chart shows the accelerated balance plunging below the standard line, with the gap at the end representing interest you never had to pay.
A worked example
Picture a 300,000 dollar balance at 6.5 percent with 30 years to go. The payment is about 1,896 dollars a month. Add 200 dollars extra and the loan is gone in roughly 25 years instead of 30, trimming around five years off the term and saving well over 60,000 dollars in interest.
Things to keep in mind
Tell your servicer to apply extra funds to principal, not to prepay the next bill, or the payoff date will not move. Check for any prepayment penalty in your loan documents first. The Investor.gov site is a neutral place to weigh extra payments against investing. To explore steady extra payments under lender limits, see our mortgage overpayment calculator.
Frequently asked questions
How is my mortgage payoff date calculated?
The calculator amortises your balance one month at a time. Each month it charges interest on what you owe, applies your payment, and reduces the principal by the rest. The payoff date is the month the balance reaches zero, which arrives sooner once an extra amount is added to every payment.
Does adding an extra payment really shorten the loan?
Yes, and the effect is larger than people expect. Every extra dollar reduces principal directly, so future interest is charged on a smaller balance. On a long loan even a modest extra payment can cut years off the term and save a substantial sum in interest.
What is the difference between this and an overpayment calculator?
They are close cousins. This payoff tool focuses on the final payoff date and the interest saved from a fixed extra monthly amount. An overpayment calculator emphasises the same comparison but is often framed around lender overpayment limits. Both rely on identical amortisation math.
Should I make extra payments or build an emergency fund first?
Liquidity usually comes first. Money paid into a mortgage is hard to get back, so most planners suggest a cash buffer of a few months of expenses before accelerating the loan. Once that safety net exists, extra payments are a low-risk way to cut interest and own your home outright sooner.
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