What Is a Mortgage Payoff Calculator?
A mortgage payoff calculator is a financial tool that demonstrates the power of making extra payments on your mortgage. It compares your original loan schedule with a new schedule based on your chosen payoff strategy (like adding extra to your monthly payment), showing you the potential savings in both time and money.
How to Use This Calculator
- Enter your current mortgage loan balance.
- Input your loan's annual interest rate.
- Enter your current monthly payment (principal and interest only).
- Choose an extra payment strategy (e.g., extra monthly, extra yearly).
- Enter the extra amount you wish to pay.
- Click "Calculate" to see your new payoff date and total interest saved.
Understanding Your Mortgage Payoff Results
- Interest Saved: The most important number. This is the total amount of interest you will avoid paying over the life of the loan by making extra payments.
- New Payoff Date: Shows you the new month and year your mortgage will be completely paid off.
- Time Saved: Displays exactly how many years and months you'll shave off your loan term.
First, Find Your Monthly Payment
This calculator requires your current principal and interest payment. If you don't know it, you can easily find it using our standard Mortgage Calculator.