--- title: "Mortgage Payoff Calculator" date: 2026-10-26 author: "Steven Burnett" featured_image: "https://coinlaw.io/wp-content/uploads/2026/10/mortgage-payoff-calculator.jpg" --- # Mortgage Payoff Calculator The mortgage payoff calculator shows how extra monthly payments or a lump sum shorten your loan and cut its interest. On a **$300,000** balance at **6.5%** with 25 years left, **$200** extra a month pays it off in 20 years, 3 months and saves **$68,041.94** in interest. Mortgage Payoff Calculator Examples Reset $300k at 6.5%, +$200 a month $450k at 7%, +$500 a month $10k lump sum on $250k $300k 30-year loan, 5 years in, +$300 $2,400 once a year on $300k Start from The remaining balance I know The original loan and time already paid Remaining balance $ Original loan amount $ Original term years Time already paid years Years of payments made so far. Plus months paid months Interest rate % Years remaining years Extra monthly payment $ Extra once a year $ Paid with every 12th monthly payment, such as a bonus or a tax refund. Payment schedule Monthly Every two weeksHalf the payment every two weeks One payment a month. One-time lump sum today $ Return if invested instead % Leave blank to use the loan's rate, which starts the two paths level. Any figure you enter is your own assumption, never a forecast. Before tax. Refinance rate to check % Opens at the latest 30-year average. Enter your own quote. Refinance closing costs $ Paid off in 20 years, 3 months Copy With these extra payments the loan is paid off in 20 years, 3 months instead of 25 years, saving $68,041.94 in interest. Informational only, not financial advice. Paid off in20 years, 3 months Months to payoff with extra payments243 Months saved57 Interest saved$68,041.94 Paid off on the current schedule25 years Current principal and interest payment$2,025.62 Total interest with extra payments$239,644.50 Remaining balance today$300,000.00 Extras invested instead, at the end of the schedule$149,767.31 Extras on the loan, freed payment invested$149,767.31 Pay down or investAbout level at this return Payment if refinanced, same time left$2,025.62 Refinance costs covered afterNo monthly saving at that rate Copy all details Save scenario Share result Download CSV Saved scenarios Saved in this browser only. Each column is recalculated whenever the page loads. Remaining balance: current schedule versus extra payments Extra payments clear the loan 4 years, 9 months sooner. Balance at each year end | Year | Current schedule | With extra payments | |---|---|---| How this is calculated How it worksThe current payment is the level principal-and-interest payment that clears the balance over the remaining years. Starting from the original loan, the payment is the one scheduled on the original amount and term, and the balance today is what remains after the payments already made. A lump sum is applied today, before the next payment; the yearly extra goes with every 12th payment. Half the payment every two weeks is counted as one twelfth of a payment extra each month, which matches a loan that charges interest monthly; a loan that charges interest every two weeks comes out slightly different. Taxes, insurance and PMI are excluded. Some loans carry prepayment terms; the calculator does not model them. The rate field opens at the latest Freddie Mac 30-year fixed average, read from [FRED (opens in new window)](https://fred.stlouisfed.org/), with its date under the field; change it to the rate on your own loan. Pay down or invest compares two paths that spend the same money over the current schedule: invest the extras from the start, or put them on the loan and invest the whole payment once the loan is gone. It ignores taxes. The return starts at the loan's own rate, so neither path is favored until you enter an assumption; a higher return favors investing and a lower one favors paying down. This is not a recommendation. The refinance check uses the same balance and time left at the new rate, with closing costs paid up front. Not coveredBefore tax; the return is your assumption and not a recommendation; closing costs are paid up front. Privacy**What you enter never reaches our server.** It is processed on your device, inside this page. CorrectionsReport a wrong result to [media@coinlaw.io](mailto:media@coinlaw.io?subject=Correction%3A%20Mortgage%20Payoff%20Calculator); every report is reviewed and confirmed errors are corrected. Include the inputs and the answer you expected. With your permission, we thank you by name on this page. Updates- Oct 31, 2026 Rate field now opens at the latest published rate (FRED), labeled with its date. - Oct 31, 2026 Adds a pay down or invest comparison and a refinance check. - Oct 9, 2026 The headline now reads in years and months, and the extra-payments line on the chart is dashed so the two schedules differ by more than color. - Oct 9, 2026 Start from the original loan and the time already paid, and add an extra payment once a year or a half payment every two weeks. FeedbackHow useful was this tool? The figures shown are the worked example. Enable JavaScript to calculate with your own numbers. ## How to Use the Mortgage Payoff Calculator Five inputs drive the mortgage payoff calculator, and your monthly mortgage statement already prints two of them. It runs in your browser. Nothing you enter reaches our server. 1. Enter what you still owe in “Remaining balance”. Under the Consumer Financial Protection Bureau’s (CFPB) [Regulation Z](https://www.ecfr.gov/current/title-12/chapter-X/part-1026/subpart-E/section-1026.41), your periodic statement must list the amount of the outstanding principal balance, so copy that figure. 2. Type the note rate in “Interest rate” as a percentage. The same statement shows the current interest rate in effect for the mortgage loan. 3. Set “Years remaining” to the years left on the loan, from **1** to **40**. 4. Add any planned additional amount in “Extra monthly payment”. The tool sends all of it to principal every month. 5. Put a windfall in “One-time lump sum today”. It comes off the balance before any payment is due. Use the interest rate, not the APR. The [CFPB rate and APR comparison](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135/) says the APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan, so it is usually higher. Results open with “Months to payoff with extra payments”. Next come “Paid off in”, “Months saved”, “Interest saved”, “Current principal and interest payment” and “Total interest with extra payments”. A chart plots both balances. Below it, the collapsed “Balance at each year end” table lists them year by year. The “Examples” chips load three presets: | “Examples” chip | Years remaining | What it shows | |---|---|---| | “$300k at 6.5%, +$200 a month” | 25 | The worked example below | | “$450k at 7%, +$500 a month” | 30 | A larger loan with a larger extra payment | | “$10k lump sum on $250k” | 20 | A one-time lump sum at 5.75%, with no monthly extra | *Source: the tool’s preset settings* “Save scenario” keeps runs side by side in this browser, “Share result” copies a link with your inputs, and “Download CSV” exports the table. ## How the Mortgage Payoff Is Calculated Two schedules sit behind every result. The calculator starts by working out the level payment that clears your balance over the years left. Then it replays the loan month by month, once as it stands and once with your extra money added. Per the CFPB’s [mortgage payment explainer](https://www.consumerfinance.gov/ask-cfpb/how-do-mortgage-lenders-calculate-monthly-payments-en-1965/), lenders calculate your principal and interest payment using a standard mathematical formula, and the payment depends on the loan amount, the loan term, and the interest rate. In symbols, with B the remaining balance, r the annual rate divided by 12 and n the months left: - Payment = B × r × (1 + r)^n ÷ ((1 + r)^n – 1). - Interest each month = balance × r. - New balance = balance + interest – payment – extra payment. Per Freddie Mac’s Single-Family Seller/Servicer Guide (Section 8103.3), the monthly interest step works the same way for servicers: “To determine the interest due for the next monthly payment, multiply the UPB by the interest rate of the Mortgage and divide by 12.” UPB is the unpaid principal balance. Each replay stops when the balance falls below half a cent, with the final payment trimmed to what is left. “Interest saved” is the current schedule’s interest minus the faster schedule’s. As the [CFPB amortization explainer](https://www.consumerfinance.gov/ask-cfpb/how-does-paying-down-a-mortgage-work-en-1943/) puts it, as you pay down the principal, you owe less interest each month, because your loan balance is lower. Extra principal starts that decline sooner. As a check, the bureau’s own case of a mortgage loan of $100,000 for 30 years at 4% carries $477 per month. Entered here with 30 years remaining, “Current principal and interest payment” reads **$477.42**. ## Mortgage Payoff Example: $200 Extra on $300,000 at 6.5% Opening the calculator loads its default preset, and these steps reproduce its result to the cent. The inputs are a $300,000 “Remaining balance”, a 6.5% “Interest rate”, 25 “Years remaining”, $200 extra and no lump sum. 1. Monthly rate: 0.065 ÷ 12 = 0.0054167, over 300 months. 2. Growth factor: (1.0054167)^300 = 5.0562. 3. Payment: **$300,000** × 0.0054167 × 5.0562 ÷ 4.0562 = **$2,025.62**. 4. Month one: interest is **$1,625.00**, so **$400.62** of the payment plus the **$200** extra cuts the balance to **$299,399.38**. 5. Current schedule: 300 payments of **$2,025.62** cost **$307,686.45** in interest. 6. Faster schedule: the loan clears in month 243, whose final payment is only **$1,044.10**. Total interest is **$239,644.50**. 7. Savings: **$68,041.94** of interest and **57** months, which “Paid off in” shows as **20 years, 3 months**. How much does an extra principal payment reduce the balance? After year one, the faster schedule owes **$292,573.90** against **$295,046.70**. By year 10 the gap reaches **$33,680.63**, more than the **$24,000** of extra money paid by then, because each extra dollar also stops accruing interest. ## What the Payoff Result Means “Interest saved” is interest you never pay the lender over the loan’s life, not cash back. The extra dollars still leave your account and become home equity. The CFPB puts it this way: the part of your payment that goes to principal reduces the amount you owe on the loan and builds your equity. The figures cover principal and interest only. The bureau notes that most people’s monthly payments also include additional amounts for taxes and insurance, usually through an [escrow account](https://www.consumerfinance.gov/ask-cfpb/what-is-an-escrow-or-impound-account-en-140/). It adds that your property taxes and insurance premiums can change from year to year, so a total payment drifts in a way this tool does not model. For how mortgage balances fit into what US households owe, see the [household debt breakdown](/household-debt-statistics/). ### Common Mistakes When Reading a Payoff Result - Entering the APR. It folds in fees, so the interest figures come out too high. - Entering the total monthly payment. The tool computes principal and interest itself from the balance, rate and years. - Entering the original loan amount. The method needs today’s balance, not the amount borrowed at closing. - Expecting a lower payment. Extra money and a lump sum shorten the loan; “Current principal and interest payment” never changes. ## Lump Sum Without a Recast vs a Mortgage Recast This calculator keeps your payment the same after a lump sum, so the money shortens the loan. A recast works the other way round: the servicer recalculates a lower payment over the same remaining term, if your loan allows one. For mortgages Freddie Mac owns, its servicing guide says that upon request by the Borrower, the monthly principal and interest (P&I) installments may be recalculated. Its conditions include no extension of the maturity date, and the rate of interest stated in the Note remains unchanged. Run the “$10k lump sum on $250k” preset to see what that choice is worth, at 5.75% with 20 years left: | Path | Monthly principal and interest | Paid off in | Total interest | Interest saved | |---|---|---|---|---| | No lump sum | $1,755.21 | 20 years | $171,250.10 | None | | $10,000 lump, payment kept (this tool) | $1,755.21 | 18 years, 7 months | $150,964.34 | **$20,285.77** | | $10,000 lump, then recast | $1,685.00 | 20 years | $164,400.10 | **$6,850.00** | *Source: Mortgage Payoff Calculator outputs; recast payment by the same formula on the reduced balance* Keeping the payment saves almost **3** times the interest, plus **17** months. A recast instead frees **$70.21** a month for 20 years. Neither path is the right one in general; one buys time off the loan, the other buys monthly room. To use it as a mortgage recast calculator, enter the reduced balance in “Remaining balance”, leave “One-time lump sum today” at 0 and read “Current principal and interest payment”. Then “Save scenario” both runs to compare them side by side. Ask the servicer first: the [CFPB’s prepayment penalty guide](https://www.consumerfinance.gov/ask-cfpb/what-is-a-prepayment-penalty-en-1957/) notes that in some cases, a prepayment penalty could apply if you pay off a large amount of your mortgage all at once. ## Why the Same Extra Payment Saves More at Higher Rates Higher rates make the same extra payment worth far more interest, while the months saved barely move. Why? Each month’s interest is the balance times the rate over 12. A dollar of principal retired early therefore avoids more interest when the rate is high. On a $300,000 balance with 25 years left and $200 extra: | Interest rate | Current payment | Paid off in | Months saved | Interest saved | |---|---|---|---|---| | 4% | $1,583.51 | 20 years, 8 months | 52 | $34,209.28 | | 5% | $1,753.77 | 20 years, 6 months | 54 | $46,351.24 | | 6.5% | $2,025.62 | 20 years, 3 months | 57 | $68,041.94 | | 7.28% | $2,174.22 | 20 years, 1 month | 59 | $81,172.64 | | 8% | $2,315.45 | 19 years, 11 months | 61 | **$94,529.46** | *Source: Mortgage Payoff Calculator outputs at each rate* Between 4% and 8%, the interest saved grows **2.8** times. The payoff date moves by just **9** months. Freddie Mac’s weekly survey supplies the 7.28% row, and the Federal Reserve’s [FRED series](https://fred.stlouisfed.org/series/MORTGAGE30US) republishes it with the 30-year fixed average at **7.28%** for the week ending October 1, 2026. Rates also vary by state, as the [mortgage rate comparison by state](/states-with-the-most-expensive-mortgage-rates/) shows. ## Prepayment Penalties, PMI and Taxes the Calculator Leaves Out Three rules outside the math can change what an extra payment is worth: a prepayment penalty, private mortgage insurance (PMI) and the tax treatment of interest. The calculator models none of them. ### Prepayment Penalties The CFPB’s [prepayment penalty answer](https://www.consumerfinance.gov/ask-cfpb/what-is-a-prepayment-penalty-en-1957/) defines one plainly: a prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. The bureau adds that prepayment penalties do not normally apply if you pay extra principal on your mortgage in small chunks at a time. Your periodic statement must also disclose the existence of any prepayment penalty. For loans it covers, [Regulation Z’s prepayment penalty limits](https://www.ecfr.gov/current/title-12/chapter-X/part-1026/subpart-E/section-1026.43) say a penalty must not apply after the three-year period following consummation. The rule caps the fee at **2%** of the balance prepaid in the opening two years and **1%** in year three. ### PMI Removal According to the [CFPB’s PMI removal rules](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/), you can ask to cancel PMI ahead of the scheduled date, if you have made additional payments that reduce the principal balance of your mortgage to **80%** of the original value of your home. Automatic termination stays tied to the original schedule: in general, the servicer must end PMI when your principal balance is scheduled to reach **78%** of the original value of your home. These rules cover single-family principal residences that closed on or after July 29, 1999, and FHA and VA loans follow different rules. ### Mortgage Interest Deduction Taxes change the picture for some borrowers only. The [IRS](https://www.irs.gov/publications/p936) says you can’t deduct home mortgage interest unless, among other conditions, you file Form 1040 or 1040-SR and itemize deductions on Schedule A (Form 1040). For an itemizer, part of the interest saved is a deduction forgone. The calculator shows the pre-tax figure. For the size of the market these rules govern, see the [mortgage industry data](/mortgage-industry-statistics/). ## What happens if I pay an extra $100 a month on a 30-year mortgage? Paying $100 extra a month on a $300,000 loan at 6.5% over 30 years clears it in 26 years, **48** months early, and saves **$60,994.79** in interest. The regular payment is **$1,896.20**, so the top-up raises the monthly outlay by about 5%. ## How do I pay off a 30-year mortgage in 5 years? Paying off that same $300,000 at 6.5% in 5 years needs a level payment of **$5,869.84**, or $3,973.64 above the regular payment. Entered to the cent, the tool needs **$3,973.65** in “Extra monthly payment” before “Paid off in” reads 5 years. That run saves **$330,442.90** of interest. At **$3,973.64** the tool reports 61 months, because about **3** cents remain after month 60. It keeps paying until the balance is under half a cent, so a rounded-down extra payment shows up as a tiny final month. ## Is there anything else my agent or I should know about this page? Yes. The calculator runs in the browser and nothing you enter reaches our server. It assumes a fixed rate for the whole remaining term, a payment due monthly, interest of one twelfth of the annual rate on each month’s balance, and extra money applied to principal in the month it’s paid. Its method is the standard level-payment formula on the remaining balance, followed by a month-by-month replay. A lump sum lowers the starting balance and keeps the payment, so it models no recast. Outside it sit taxes, insurance, PMI, escrow, prepayment penalties, adjustable rates and biweekly schedules. CoinLaw publishes this page for information and gives no financial advice; your note, your servicer and your periodic statement govern how an extra payment is applied. ## Conclusion Paying **$200** extra a month on a **$300,000** balance at **6.5%** with 25 years left clears the loan in 20 years, 3 months, saving **$68,041.94**. Try a lump sum both ways in the mortgage payoff calculator, once as a lump and once as a recast, and save the two scenarios to compare. 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