Mortgage & Debt Payoff Calculator
Compare a standard payoff schedule with optional extra monthly principal payments. Calculations happen in your browser.
Accelerated payoff: ·
Show first 24 months of accelerated schedule
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How to use the mortgage and debt payoff calculator
Enter the current balance, annual interest rate, remaining loan term, and any extra amount you plan to apply to principal each month. Select Calculate payoff to compare the normal amortization schedule with the accelerated schedule. The results show the estimated standard payment, total interest, time saved, and interest saved.
Why extra principal changes the payoff
Interest on an amortizing loan is calculated from the outstanding balance. When an additional payment is applied to principal, the next interest calculation starts from a smaller balance. Repeating that process can reduce both the number of payments and the total interest paid. The effect is usually larger on higher-rate loans and when extra payments begin earlier in the repayment period.
Example
Suppose a borrower has a fixed-rate loan and can consistently add $100 or $200 to the required monthly payment. Enter each scenario separately and compare the estimated payoff time and interest. This can help evaluate whether a recurring extra payment is meaningful before changing a household budget.
What the estimate includes
The calculator models a fixed balance, fixed annual rate, fixed remaining term, and optional recurring extra principal. It does not include property taxes, homeowners insurance, mortgage insurance, escrow changes, late fees, adjustable-rate changes, or lender-specific daily-interest calculations.
Frequently asked questions
Can I use this for non-mortgage debt?
Yes, when the debt behaves like a standard amortizing installment loan. Results may not match credit cards or other accounts whose rates, fees, or minimum-payment formulas change over time.
Does an extra payment always go to principal?
No. Servicers can apply payments differently. Verify that an extra payment will be credited to principal and review any prepayment terms before relying on the estimate.
Is this financial advice?
No. This tool is for educational planning. Actual payoff figures should come from your lender or servicer.