Mortgage Early Payoff Calculator
Calculate how extra payments reduce your loan term and interest. Visualize your financial freedom date with precision.
About
Paying off a mortgage early requires a clear understanding of how interest compounds over decades. Even small additional contributions to the principal balance can drastically shorten the loan lifespan. This tool projects the exact month and year you will become debt-free based on your specific repayment strategy. It accounts for monthly extra payments, annual bonuses, or one-time lump sums. Banks often present amortization schedules that seem rigid, but borrowers usually have the right to accelerate repayment without penalty. Accuracy is vital here because a miscalculation of a few dollars in monthly interest can result in a projection error of several months over a 30-year term. Use this calculator to simulate various scenarios and determine the most efficient path to full home ownership.
Formulas
The standard monthly payment M is derived from the principal P, monthly interest rate r, and total number of months n.
When an extra payment E is applied, the remaining principal balance Bk after payment k is reduced faster than the schedule dictates.
Reference Data
| Payment Strategy | Monthly Principal | Monthly Interest | Total Interest Paid | Payoff Time |
|---|---|---|---|---|
| Standard Schedule | $450.00 | $900.00 | $185,000 | 30 Years |
| +$100/mo Extra | $550.00 | $895.00 | $145,000 | 24 Years |
| Annual $1,000 Bonus | $450.00 | $900.00 | $155,000 | 25 Years |
| Bi-Weekly Payments | $225.00 | $450.00 | $160,000 | 26 Years |
| 15-Year Refinance | $1,100.00 | $600.00 | $75,000 | 15 Years |
| Aggressive Payoff | $2,000.00 | $400.00 | $40,000 | 9 Years |