cost-calculation
Mortgage Payoff Calculator (2026) — Extra Payments & Amortization Schedule
A mortgage payoff calculator shows when your loan ends and how much interest you avoid by paying extra. Enter your balance, rate and months remaining, then add an extra monthly amount or a lump sum. Extra payments go straight to principal, so every dollar shortens the schedule and cuts the interest you owe.
Educational estimate based on the inputs you entered — not financial, legal, or tax advice. Verify against your specific situation before acting on this output.
How it works
Methodology
Inputs
- Current loan balance
- Principal still owed today, from your latest statement.
- Interest rate
- Annual note rate on your fixed-rate mortgage.
- Months remaining
- Scheduled payments left on the loan (e.g. 336 = 28 years).
- Current monthly P+I
- Optional. Leave blank to derive the level payment from balance, rate and months.
- Extra principal per month
- Additional amount added to every payment and applied entirely to principal.
- One-time lump sum
- A single extra principal payment applied today.
Formula
Level payment = B × r(1+r)^n / ((1+r)^n − 1), r = annual rate ÷ 12, n = months remaining Each month: interest = balance × r; principal = payment + extra − interest; balance −= principal Payoff months = months until balance reaches 0 Interest saved = interest on scheduled path − interest on accelerated path
Assumptions
- Fixed-rate loan with payments made on schedule; ARMs and recasts are not modeled.
- Extra amounts are applied entirely to principal when received — confirm your servicer's handling.
- Figures cover principal and interest only; taxes, insurance, PMI and HOA are excluded.
- Prepayment penalties, if any, are not included — check your loan documents.
- Market-scale context: the New York Fed's Q2 2026 Household Debt and Credit Report counted $505 billion in loans newly originated as mortgages in the second quarter of 2026 alone, against $13.12 trillion in loans outstanding nationally against residential real estate.
- Rate context: Freddie Mac's weekly Primary Mortgage Market Survey put the average 30-year fixed mortgage rate at 7.24% as of October 29, 2026 — a market reference, not a quote; use your own note rate in the calculator.
Worked examples
$200 extra every month
- Balance
- $300,000
- Rate
- 6.5%
- Months remaining
- 336 (28 years)
- Extra per month
- $200
Scheduled P+I ≈ $1,941. Payoff moves from 28 yr to 22 yr (6 yr sooner) and total interest falls from $352,192 to $263,934 — about $88,258 saved. Illustrative scenario, computed by this calculator.
$20,000 lump sum today
- Balance
- $250,000
- Rate
- 6.0%
- Months remaining
- 300 (25 years)
- Lump sum
- $20,000
Scheduled P+I ≈ $1,611. Keeping the same payment, payoff moves from 25 yr to 20 yr 11 mo (4 yr 1 mo sooner), saving about $59,017 in interest. Illustrative scenario, computed by this calculator.
Frequently asked
Questions readers ask
How do I calculate my mortgage payoff date? +
Each month, interest equals the remaining balance times the monthly rate (annual rate ÷ 12). The rest of your payment reduces principal. Repeat until the balance reaches zero — the number of months it takes is your payoff date. Adding extra principal makes every later month's interest smaller, so the loan ends sooner. This calculator runs that month-by-month schedule for you.
Does an extra mortgage payment really save interest? +
Yes. Interest accrues on the remaining balance, so principal you remove early stops generating interest for the rest of the loan. The earlier in the term you pay extra, the more it saves, because more months of interest are avoided. Confirm with your servicer that extra funds are applied to principal rather than held toward the next scheduled payment.
Is a lump sum or a monthly extra payment better? +
Mathematically, whichever removes more principal sooner. A lump sum today starts saving interest immediately; a smaller monthly extra saves a little each month and builds over time. Use the two inputs together to compare. Before prepaying aggressively, make sure you keep an emergency fund and have weighed higher-interest debts, since mortgage principal paid is not easy to get back.
Can my lender charge a penalty for paying off a mortgage early? +
Some loans carry a prepayment penalty, and lenders must disclose it. Check the prepayment-penalty section of your Loan Estimate or closing disclosure and your note, or ask your servicer in writing. The CFPB explains how prepayment penalties work and where to find yours.
What is an amortization schedule? +
An amortization schedule lists, period by period, how much of each payment goes to interest and principal and what balance remains. Early in a 30-year loan most of each payment is interest; the split shifts toward principal over time. The table under the calculator shows your schedule by year, including the effect of any extra payments you enter.
This tool is for educational purposes only and is not financial, legal, or tax advice. Final terms and eligibility depend on lender underwriting; consult a tax professional before acting on tax-tool output. ClearValue Lending is a funding platform.
https://clearvaluelending.com/tools/mortgage-payoff-calculator