Mortgage Payoff Calculator

A payoff estimate is most useful when it starts from the current principal balance and remaining repayment period rather than from the original purchase price. Enter the balance, annual rate, remaining term, and current principal-and-interest payment if you have it. The page builds a baseline schedule, then applies your extra-payment choices to a second schedule so you can see the difference in months and modeled interest.

This is a schedule model, not a payoff quote. Mortgage statements and servicer records can include escrow, fees, timing rules, or amounts not represented by a simple principal-and-interest balance. The CFPB explains that a mortgage statement identifies amounts applied to principal, interest, and escrow; use those records before entering a scenario. For a standard schedule without acceleration options, visit the Amortization Calculator.

For each modeled month, interest is the opening balance multiplied by the monthly rate. The scheduled principal is the payment minus that interest. The calculator then adds any extra monthly amount, the modeled biweekly effect, or a selected one-time lump sum to principal, without allowing the principal amount to exceed the remaining balance.

Because interest is recalculated from the lower next-month balance, an extra amount can change later interest in this model. It does not tell a servicer how to apply a real payment.

Suppose the current balance is $180,000, the fixed annual rate is 5%, and there are 300 months remaining. The standard payment formula produces a baseline principal-and-interest payment of $1,052.26. In the first modeled month, interest is $180,000 × 0.05 / 12 = $750.00, leaving $302.26 of scheduled principal.

If you add $150 as modeled extra principal, the first month's principal becomes $452.26 and the modeled closing balance becomes $179,547.74. On the next month, the interest calculation starts from that lower balance. The schedule repeats this process until the balance reaches zero. This is a genuine arithmetic check you can reproduce before interpreting the longer-term interest and time differences.

When you select a target payoff date, the calculator iteratively finds a monthly extra amount that reaches that date under its fixed-rate schedule. Treat the result as the extra amount required by this model, not as a payoff instruction. A real account's payoff quote can change with posting dates, per-diem interest, unpaid charges, and the next required payment.

The biweekly option is deliberately described as an effect rather than a calendar. It adds one regular principal-and-interest payment divided by 12 to the model each month, which approximates the extra annual payment effect some borrowers expect from a 26-payment pattern. A servicer's actual biweekly program may use different timing, processing, fees, or rules. Ask before enrolling or assuming an extra transfer will be posted to principal.

This tool can also project what the selected extra-payment cash might mathematically grow to if a user enters an assumed investment return. That comparison is intentionally narrow: it does not model taxes, account restrictions, market volatility, liquidity needs, employer matches, insurance, emergency savings, or a person's risk tolerance. A return assumption is not a forecast.

Use that feature to expose the assumption, not to settle a personal decision. The mortgage side of the page remains a deterministic fixed-rate schedule from the inputs you provide; the investment side is a hypothetical compound-growth calculation. If the key question is whether a different loan term or rate changes your payment, use the Mortgage Calculator or Mortgage Refinance Calculator for that separate comparison.

1. Copy the current principal balance and required payment from a recent statement or servicer record.
2. Check that your entered rate and remaining term describe the same loan position.
3. Run a baseline before adding any extra amount.
4. Ask the servicer how to label and time an additional payment so it is treated as intended.
5. Request an official payoff amount before attempting to close a loan, because the final amount can differ from a planning schedule.

If a formula, explanatory label, or output looks inconsistent, report it through the page's issue form with non-sensitive sample inputs. That helps improve the calculator without collecting account details.