Mortgage Payoff Calculator

Calculate your monthly mortgage payments, total interest costs, and see how extra payments can help you pay off your mortgage faster.

How to Use This Calculator

Enter your mortgage details to calculate your monthly payment, total interest paid, and see your amortization schedule. Add an extra monthly payment to see how it can reduce your loan term and total interest.

Mortgage Calculation Formula

Monthly Payment = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]

Where: P = Principal loan amount, i = Monthly interest rate, n = Number of monthly payments

Mortgage Calculation Results

Amortization Schedule

Payment # Date Payment Principal Interest Extra Payment Total Payment Remaining Balance

About Mortgage Payoff Calculator

Our Mortgage Payoff Calculator helps you understand the financial implications of your home loan. By inputting your loan amount, interest rate, and term, you can calculate your monthly mortgage payment, total interest paid over the life of the loan, and see how making extra payments can significantly reduce both your loan term and total interest costs.

This tool is particularly useful for homeowners who want to:

  • Understand their monthly mortgage obligations
  • Plan for early mortgage payoff
  • Compare different loan scenarios
  • Visualize how extra payments impact loan duration
  • Make informed decisions about refinancing

Frequently Asked Questions

Making extra payments directly reduces your principal balance, which in turn reduces the total interest you'll pay over the life of the loan. Even small additional payments can significantly shorten your loan term. For example, adding just $100 to your monthly payment on a $300,000, 30-year mortgage at 4.5% could save you over $30,000 in interest and cut your loan term by several years.

An amortization schedule is a table that shows the breakdown of each mortgage payment into principal and interest over the life of the loan. In the early years of a mortgage, a larger portion of each payment goes toward interest. As the loan matures, more of each payment goes toward reducing the principal balance. Our calculator provides a detailed amortization schedule so you can see exactly how your payments are applied.

The monthly mortgage payment is calculated using the formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ], where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (loan term in years multiplied by 12). This formula ensures that each payment covers both interest and principal in such a way that the loan is paid off exactly at the end of the term.

Whether to pay off your mortgage early depends on your financial situation and goals. Benefits include saving on interest, reducing debt, and increasing financial security. However, consider if you could earn a higher return by investing that money elsewhere, especially if you have a low mortgage rate. Also, ensure you have adequate emergency savings and are contributing sufficiently to retirement accounts before making extra mortgage payments.