Mortgage Payoff Calculator
Find out how quickly you can pay off your mortgage by making extra monthly or lump-sum payments.
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Pay Off Your Mortgage Early
Making extra principal payments dramatically reduces your loan term and total interest paid. Even a small additional payment each month can save tens of thousands of dollars over the loan life.
What is the Mortgage Payoff Calculator?
The Mortgage Payoff Calculator shows homeowners exactly how much time and interest they can save by making additional principal payments on their home loan. It is the ultimate tool for achieving debt-free homeownership faster.
How It Works (Formula)
Mortgages use amortized interest, meaning you pay interest on the outstanding principal balance. By adding extra money to your monthly payment, you directly shrink the principal. This triggers a compounding effect where future interest charges plummet, drastically shortening the lifespan of the loan.
$$ n = \frac{-\log(1 - \frac{rP}{A})}{\log(1 + r)} $$
The formula for calculating the new number of periods ($n$) based on the increased payment ($A$).
How to Use It
Enter your current mortgage balance, interest rate, and remaining term. Then, input the extra amount you plan to pay each month. The calculator will output exactly how many years you will shave off the loan and how much money you will save in interest.