Mortgage Payoff Calculator
Calculate how long it will take to pay off your remaining mortgage balance at your current or an increased monthly payment.
Results
Visualization
How It Works
This calculator determines how long it will take to pay off your remaining mortgage balance at a given monthly payment. It is especially useful when you want to see the impact of increasing your payment above the minimum required amount. Even a small increase can dramatically shorten your payoff timeline.
The Formula
where n = number of months to payoff
Total Interest = (M x n) - B
Variables
- n — Number of months until the loan is fully paid off
- B — Current remaining balance on the mortgage
- r — Monthly interest rate (annual rate / 12)
- M — Monthly payment amount (principal and interest only)
Worked Example
With a $250,000 balance at 6.5% and paying $2,000/month, payoff takes about 18.6 years with $196,000 in total interest. Increasing to $2,500/month cuts payoff to 13.1 years and saves about $78,000 in interest.
Practical Tips
- Your payment must exceed the monthly interest charge (balance x rate / 12) or the loan will never pay off.
- Every extra $100/month on a $250,000 mortgage at 6.5% saves roughly 2 years of payments.
- Use this calculator to test different payment scenarios and find the sweet spot for your budget.
- Remember that your actual mortgage payment may include escrow for taxes and insurance, which do not reduce your principal.
- If you received a raise or paid off another debt, consider redirecting that money to your mortgage to accelerate payoff.
Frequently Asked Questions
What if my payment is less than the monthly interest charge?
If your payment does not cover the monthly interest, your balance will grow instead of shrink. This is called negative amortization. The calculator will warn you if your payment is too low. You need to pay at least the interest plus some principal each month to make progress on paying off the loan.
Should I use the total mortgage payment or just the principal and interest portion?
Use only the principal and interest (P&I) portion of your payment. Your total mortgage payment typically includes property taxes, homeowners insurance, and possibly PMI in the escrow portion. These do not reduce your loan balance, so including them would give inaccurate results.
How does this differ from the amortization schedule calculator?
The amortization schedule calculator shows a full payment-by-payment breakdown from the start of a loan. This payoff calculator focuses on where you are now: given your current balance, rate, and payment, when will you be done? It is designed for people mid-loan who want to see the impact of changing their payment amount.
Can I use this for non-mortgage loans like car loans or personal loans?
Yes. The math is the same for any fixed-rate amortizing loan. Enter your remaining balance, interest rate, and monthly payment. It works for auto loans, student loans, personal loans, and any other installment loan with a fixed interest rate.
Why does a small payment increase save so much interest?
Interest compounds on your outstanding balance every month. When you pay extra principal, the balance drops faster, which reduces the interest charge for every remaining month. This creates a snowball effect where each dollar of extra principal saves multiple dollars of interest over the remaining life of the loan. The earlier you increase your payment, the larger the compounding benefit.