Last updated: March 17, 2026

Mortgage Payoff Calculator

Calculate how much you can save by making extra mortgage payments and when you'll pay off your loan.

Input
$
%
years
$

Mortgage Payment Formula

The calculator uses standard mortgage amortization formulas:

  1. Monthly Rate = Annual Rate / 12 / 100
  2. Number of Payments = Loan Term × 12
  3. Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
  4. Where P = Principal, r = Monthly Rate, n = Number of Payments

Example Calculation

For a $300,000 loan at 4.5% for 30 years with $200 extra payment:

Monthly Payment: $1,520.06 With Extra Payment: $1,720.06 Payoff Time: 23.5 years (6.5 years earlier) Interest Saved: $68,547

Frequently Asked Questions

How do extra payments help? ▼

Extra payments go directly toward your principal balance, reducing the total interest you pay over the life of the loan and shortening your payoff time.

Should I make extra payments or invest? ▼

It depends on your mortgage rate vs. potential investment returns. If your rate is high, paying off the mortgage may be better. Consult a financial advisor.