Use the FREE mortgage payoff calculator app and calculate your early payoff and savings!

We Have An App!

PayItOff – Loan Calculator

Calculate your loan payments.

Simulate your savings when you refinance.

Figure out how early you can pay off your loans with help of extra payments.

All in one easy-to-use and FREE app.

Page Contents

• Mortgage Payoff Calculator
  • Mortgage Payoff Calculator: How to use? (with screenshots)
    • Step 1
    • Step 2
    • Step 3: Impact of refinance on mortgage payoff
    • Step 4: Impact of extra payment on mortgage payoff
    • Step 5: Impact of both – refinance and extra payments on mortgage payoff
    • Conclusion: For early payoff of mortgage, there are two very effective levers you can pull: make extra payments and refinance to a lower rate

Mortgage Payoff Calculator: How to use? (with screenshots)

Step 1

Fill in all the relevant values such as the loan amount for example $400,000, interest rate (yearly) for example 4.00%, loan tenure in years and months, for example, 30 years and 0 months.

After filling in the details, hit the calculate button at the bottom.

Step 2

Using the information provided in the form, the app calculates the following:

Monthly payment – how much you’re supposed to pay every month: $1909.56

Total months remaining – how many months you’d have to make the payment to pay off the mortgage: 360 (i.e. 30 years you had input)

Total interest payable – this is the sum of all interest payments (on top of your principal amount or the borrowed amount of $400,000) you would pay to pay off the loan: $287,478.03

So effectively, you’d pay $287,478 (interest) + $400,000 (principal) = $687,478 in total.

Till here, it’s the basic mortgage repayment math. Next, we will explore the impact of two things –

1. refinancing mortgage to a lower rate
2. making extra payments on top of calculated ‘monthly payment’

There are two new fields for that.

Step 3: Impact of refinance on mortgage payoff

You should always check for refinancing offers on all your loans.

Suppose you find a lender that is willing to refinance your mortgage at a lower rate, for example, 3.00%. Enter 3.00 in the ‘what’s your refinance offer’ field.

Hit the RE-CALCULATE button to see the impact of refinancing at 3%

We observe that based on the lower interest rate of 3%, the new monthly payment is $1686.42, down from $1909.66.

A 1% lower interest rate on a mortgage enables you to save $80,368 in total interest!!!

Step 4: Impact of extra payment on mortgage payoff

If you are not able to find a lower interest rate currently, you can still accelerate your mortgage payoff by making small extra contributions every month.

Let’s say you can pay $100 extra every month, input 100 in the appropriate field and hit RE-CALCULATE.

The app recalculates your scenario taking the extra payment into account.

Based on the updated information, the new payment becomes $2,009.66 ($1909.66 suggested monthly payment + $100 extra payment).

$100 extra monthly payment enables you to pay off your mortgage 32 months faster and saves you $29,802 in total interest.

Step 5: Impact of both – refinance and extra payments on mortgage payoff

Now this is the star scenario- you are able to refinance mortgage to a lower interest rate (3%) AND you commit to making extra payment ($100 per month) on the recommended monthly mortgage payments.

Based on the refinance rate of 3% and extra payment of $100 every month, your new monthly payment becomes $1,786.42 ($1,686.42 due to lower interest rate, as in step 3 + $100 extra monthly payment).

$100 extra every month and refinancing to a 1% lower interest rate enables you to pay off the mortgage 31 months faster and save $100,458 in total interest.

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Conclusion: For early payoff of mortgage, there are two very effective levers you can pull: make extra payments and refinance to a lower rate

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Updated: May 25, 2022 by FinPins