Mortgage Payoff Calculator

Calculate when your mortgage will be paid off and how extra payments can accelerate your payoff date while saving thousands in interest.

Mortgage Details

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Principal & interest only

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Ready to Calculate

Enter your remaining balance, payment details, and any extra amount to see your payoff timeline.

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Pro Tip

Apply tax refunds, work bonuses, and other windfalls directly to your mortgage principal. A single extra payment of $5,000 early in the loan can save over $15,000 in interest.

See Extra Payment Calculator →

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Understanding Mortgage Payoff

The mortgage payoff calculator helps you understand exactly when your mortgage will be fully paid and how extra payments affect your timeline. Unlike amortization calculators that start from the beginning of a loan, this calculator works with your current remaining balance and payment.

Each month, your payment covers two things: interest on the remaining balance and principal reduction. The interest portion is calculated as your remaining balance multiplied by the monthly interest rate. Whatever remains of your payment after interest goes toward reducing the principal.

When you make extra payments, 100% of the extra amount goes toward principal reduction. This lowers the balance faster, which means less interest accrues the following month. The effect compounds over time, creating substantial savings.

The payoff date depends on three factors: your remaining balance, interest rate, and total monthly payment (regular plus extra). Even a modest increase in your monthly payment can have a dramatic impact on both the payoff date and total interest paid.

Payoff Formula

Months to Payoff

n = -log(1 - rP/M) / log(1 + r)

Where:

n = Number of months to payoff

r = Monthly interest rate (annual rate / 12)

P = Remaining principal balance

M = Monthly payment amount

Example

For a $250,000 balance at 6.5% with $1,896/month + $300 extra:

  • • Monthly interest rate: 6.5% / 12 = 0.5417%
  • • Without extra: ~195 months (16.3 years) to payoff
  • • With $300 extra: ~148 months (12.3 years) to payoff
  • • Time saved: ~47 months (3.9 years)
  • • Interest saved: ~$52,000

Frequently Asked Questions

How is my mortgage payoff date calculated?
The calculator simulates each monthly payment, subtracting interest from your payment to determine how much principal is paid. It continues month by month until the balance reaches zero, counting the total months required.
What if my payment doesn't cover the monthly interest?
If your monthly payment is less than the monthly interest charge, your balance will grow instead of shrink (negative amortization). The calculator requires your payment to exceed the monthly interest to produce valid results.
How much extra should I pay each month?
Any extra amount helps. Even $50-100/month extra can save years and thousands in interest. The ideal amount depends on your financial goals, other debts, and emergency savings. Use this calculator to compare different extra payment amounts.
Does paying extra reduce my minimum payment?
No, extra payments reduce your principal balance and shorten the loan term, but your minimum required payment stays the same. You can always stop extra payments if needed without penalty.
Should I pay off my mortgage early or invest?
This depends on your mortgage rate vs. expected investment returns. If your mortgage rate is 6.5% and you can earn 8-10% investing, investing may provide better returns. However, mortgage payoff offers guaranteed savings and reduces financial risk.