Enter your remaining mortgage balance, interest rate and loan term, then choose a faster payoff target to estimate the payment required, potential interest savings and how much time you could save.
Compare your current repayment schedule with a faster target payoff period.
See the estimated payment, interest and payoff timing side by side.
This annual schedule uses the payment required to reach your selected payoff period.
| Year | Beginning Balance | Payments | Principal Paid | Interest Paid | Ending Balance |
|---|
A mortgage payoff goal starts with your current balance, interest rate and the number of months remaining on your loan.
LoanMathWorks first estimates the principal-and-interest payment required to finish the loan on its current schedule. It then calculates the payment required to amortize the same balance over your shorter target period.
Paying the balance over fewer months requires a larger monthly payment, but the loan balance declines faster.
Because interest is generally calculated using the outstanding balance, paying principal down more quickly can reduce the amount of interest that accrues over the remaining life of the loan.
A dramatically shorter payoff period can require a significantly larger monthly payment. Try several target periods to compare the additional payment required with the estimated interest savings.
The amount depends on your remaining balance, interest rate, current repayment period and target payoff date. This calculator estimates the payment needed and subtracts your normal scheduled payment to show the additional monthly amount.
Mortgage interest is generally based on the unpaid principal balance. Reducing that balance more quickly can decrease the amount of future interest that accrues.
No. The payoff calculation focuses on loan principal and interest. Property taxes, homeowners insurance and HOA expenses generally do not change the mortgage principal payoff calculation.
Yes, provided the target period is shorter than your current remaining term. A very short target may result in a substantially higher required monthly payment.
Not necessarily. Paying down a mortgage faster can reduce interest, but financial decisions may also involve emergency savings, retirement contributions, other debts, taxes and investment alternatives.
Yes. Confirm how additional funds are applied and review your mortgage agreement for any relevant prepayment rules or restrictions.