Mortgage Payoff Calculator

It depends on the rate and how long is left, but the effect is bigger than most people expect because it compounds. On a $250,000 balance at 6.50% with 25 years to run, an extra $300 a month clears the loan about seven years early and saves roughly $86,000 in interest — for about $25,000 of extra payments made along the way.

Pay the 15-year payment on the 30-year loan. On a $250,000 mortgage at 6.50% the required payment is $1,580; the same balance over 15 years would need $2,178. Adding about $600 a month closes that gap, ends the loan in exactly 15 years and saves roughly $177,000 in interest — and unlike refinancing into a 15-year loan (compare that route in the mortgage refinance calculator), the higher payment stays optional, so you can drop back to $1,580 in a tight month. Enter your own balance and try different extra amounts to find the payoff date you want.

A lump sum paid today saves more per dollar than the same money spread over years, because it stops interest accruing on that amount immediately. But a monthly habit usually wins in practice: it is larger in total and it keeps working. The calculator takes both, so you can compare them directly on your own numbers.

That is a comparison of your mortgage rate against your expected after-tax return, and only you know your risk tolerance and tax position. What the calculator gives you is the certain side of that comparison: paying the loan down returns exactly your interest rate, guaranteed, with no market risk. Weigh that against the uncertain side yourself, or with an adviser.

No — not unless you ask the lender to recast the loan. Extra payments shorten the term instead: the required payment stays the same and the loan simply ends sooner. A recast (sometimes called re-amortization) recalculates the payment on the reduced balance over the original term; not every lender offers it, and many charge a fee.

Yes. Nothing in it is mortgage-specific — any fixed-rate amortizing loan behaves the same way. Use it for a student loan or a personal loan by entering that balance, rate and remaining term; for a vehicle there is a dedicated car loan payoff calculator, which also covers the prepayment penalties auto lenders charge and mortgage lenders mostly don't. If you want the payment on a loan you haven't taken yet, use the amortization calculator or the loan calculator instead.

Then the schedule is an estimate valid until the next reset. On an adjustable-rate loan the lender recalculates the required payment at each adjustment using the new rate and the balance left, so re-run this calculator after every change with your new figures.