Mortgage & Real Estate

Mortgage Payoff Calculator

Find out how much sooner you'll be mortgage-free — and how much interest you'll save — by adding extra payments toward principal.

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Adjust any field and recalculate — figures are pre-filled with a typical example.

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How it works

Formula & explanation

Mortgage Payoff Calculator uses the following calculation:

New payoff time solves: Balance = Σ (Payment + Extra) discounted at r, until Balance = 0

This is a simplified model intended for planning and education. Real-world offers from lenders, institutions, or tax authorities may include additional fees, rules, or adjustments not reflected here.

FAQ

Frequently asked questions

Is it better to pay extra toward my mortgage or invest?

It depends on your mortgage rate versus expected investment returns and your risk tolerance — paying down debt is a guaranteed return equal to your interest rate.

Will my lender apply extra payments to principal automatically?

Not always — many lenders require you to specify that extra funds go to principal, so check your loan servicer's payment options.

Are there prepayment penalties?

Most conventional US mortgages originated after 2014 don't have them, but always check your loan documents before making large extra payments.

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