Early Payoff Calculator

Early Loan Payoff Calculator

Our Mortgage Payoff Calculator tells how much to add to monthly payments to reduce your loan term and how soon you will pay off your home loan. 

Accelerate Your Mortgage?

While some financial experts caution against paying off a mortgage early (money once given to a lender isn't always easily gotten back if or when you need it), if you have extra cash on hand and don't like debt, reducing or eliminating your mortgage more quickly than the agreed upon schedule may give you the peace of mind or breathing room in your budget when you are older.


Early Payoff Calculator

Result

to request free refinance quotes from our database of pre-screened mortgage lenders.

OR

to see current rates in your area

How to use the Early Payoff calculator

Here's how it works: You input your original mortgage balance, the original term and interest rate. Then figure out how many month's of payments you've already made. Finally, decide how soon you'd like to have your mortgage paid off. For example, a couple in their 40's may decide that they'd like to pay off the 30-year loan they took out last year in 20 years. They input the particulars of their current loan, put in a new term of 20 years, and the Early Payoff Calculator determines how much extra they need to pay each month to make that happen.

Refinance Your Mortgage?

But adding extra to your payment each month isn't the only way to accelerate a mortgage. Refinancing to a shorter term might be a better way if you can get a lower mortgage rate. Interest rates are near historical lows. Paying your mortgage early by refinancing to a 15 year loan reduces your interest expense because 15-year rates are lower than 30-year rates, and a 15-year loan also accelerates your loan payoff. Using our Mortgage Refinance Calculator allows you to compare the payment on a new 15-year mortgage to the payment on the Early Payoff Calculator.  You might be able to retire the loan even faster or pay less each month by refinancing.

Mortgage calculators are invaluable tools for helping you with your financial planning. And prepaying or refinancing your mortgage now may make your finances a lot more comfortable in the future.

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Comments


Tammo
2011-04-04 10:18:52
I trying to decide whether to downsize and cannot find a calculator that tells me what will be outstanding on our current mortgage in 2024 when my husband and I turn 60. We are in month 17 of a 30 year fixed at 4.75% on a $580k loan and repay the basic $3046 a month. Do you have a calculator for that? Thanks

Lori
2011-02-28 17:45:48
Is it better to make monthly payments to the prinicpal on my mortgage or save the money for a larger downpayment on a new house if I am planning on selling my home in the next year or two?

Jim Wiseman
2010-02-11 14:39:05
I owe 122,000 on a home loan - 25 years and 6 months left at 6.5%. If I pay $500 extra towards the principle, how long will it take to get below 120,000? Is it better to refinance and get a better interest rate? Thank you.

pam zink
2010-01-10 15:00:24
whats the best way to pay off a 30 yr. interest only loan w/ a fixed rate of 6.70% based on $ 411,000 & a second mortgage of $ 84,000 w/ an interest rate of 9.85% ( the second mortgage that came with the original mortgage is NOT an interest only loan )...an suggestions ?

BJ
2008-11-22 20:46:00
Getting ready to purchase house and would prefer to pay off in 15 years, but was wondering and worrying about future unstable economy . . .so . . . would it is wise to get 30 year loan, but make 15 year loan payments, thereby paying off early, being able to cut back on payments (paying 30yr loan amt.) if times got tough? Thanks! - - - EDITOR'S REPLY: If you're disciplined enough to do it, it is a good idea to get a 30-year loan and make 15-year loan payments to pay off early. Just work that out with your lender up front to make sure all payments above the 30-year payment requirement go straight to principal. And make sure there is not an early withdrawal penalty in the contract. Basically, when you pay off a 30 year loan in 15 years, you save yourself a ton of interest. In doing so, you cost your lender a ton of revenue. So it's not uncommon for them to find ways to make up some of the difference. Read your contract very carefully and negotiate terms if needed to make sure you can pay off your 30-year mortgage in 15 years without any hassles or penalties. Then exercise the appropriate discipline to make those extra payments. Most people who try this end up making the extra payments for a while and then they end up finding something else to spend the money on. So if you're not more disciplined than most people, get a shorter term loan (maybe 15 or 20 year loan). In the future, if times get tough and you can't make the payments on your short term loan, you can refinance for a longer term. If you put down a nice down payment and you chose a shorter term loan, you should be able to maintain equity in the home, even if home values in your neighborhood are not rising. So provided you maintain good credit, refinancing at a later date to a longer term should be relatively easy.

ray
2008-10-25 13:14:00
thanks

mark
2008-10-06 06:25:00
loan amount: does this mean total amt currently owed to bank? Please define "no. of payments made"? - - - EDITOR'S COMMENT: Good questions. Loan Amount refers to the original amount of the loan. "Number of Payments Made" ("No." is an abbreviation for "Number") refers to the number of payments you have already made on the loan from the time you took out the loan until today. "New Loan Trm" refers to what you want the new repayment period to be, from the month in which you originally took out the loan out until the day it will be fully repaid.

Cathy
2008-08-05 17:24:00
If I make a lump sum payment of say $10,000.00 on my mortgage will that reduce the amount of interest I pay each month, making more of monthly payment go to principal? Thanks - - - EDITOR'S RESPONSE: In many cases, yes, but check with your lender, and read your loan paperwork carefully. Some loans are less hospitable to lump sum payments than others. And either way, you'll want to coordinate the application of your payment with your lender. I've seen cases where someone made a lump some payment, and a clerk at the lender's institution entered it as advance payment of the next three month's mortgage. This did them no good at all. It's important to A) review your paperwork to see whether lump sums will be applied 100% to principal and B) check the paperwork to see whether there is any early payoff penalty (yes, some loans actually carry a penalty for paying them off early), C) call your lender before you send the payment to make sure they understand what to do with it, and C) call your lender or check your account online after you send the payment to make sure that your principal was reduced by the appropriate amount. It sounds like a lot, but it won't take more than a couple of hours when all is said and done, and it's worth it :-)

Barbara Jones-Calculator
2008-07-19 19:51:00
Hi, Is there a calculator that will show me how long it will take if I make extra principal payments? - - - - EDITOR'S COMMENTS: We have an "Additional Payments Calculator" that can help you, but you'd have to play around with it for awhile to get the information you're looking for, because it approaches the question like this: "To pay off my mortgage by a given early payoff date, how much extra do I need to pay each month?" We've had a number of people indicate that they want to approach this from the angle: "If I pay $X extra every month, how much sooner will I repay the loan." In response, we will begin development of this type of calculator. In the meantime, use the Additional Payments Calculalator, adjusting the payoff date until the dollars per month mirrors the amount you are interested in paying extra each month.

TM
2008-07-01 17:35:00
Used the calculator to look at student loans and early pay off. Interest is not tax deductable due to income level. Thanks for the calc.

Mark
2008-06-13 08:34:00
Over the years people always talked about making one extra principal payment a year and you can pay your mortgage off in half the time. I just used your calculator and it states that I need to make extra payments of 1/3 of the payment amount every month to payoff the loan early, what gives? - - - - EDITOR'S COMMENTS: It depends on our interest rate, of course. At 7% annual interest on a 30-year fixed rate mortgage, if you, from day one, increase every payment by 35%, you'll pay off your loan in 15 years, curring the repayment period in half. If you had a high-interest rate loan, like we were seeing in the 1980s, so you had a 30-year fixed rate at 12% Interest rate, you would only have to increase each payment by 17% to pay it off in half the time. The higher your interest rate, the greater the affect of making extra payments. Make sense? But if you're only making one extra payment a year (as you would with a typical bi-weekly repayment plan, you're only paying 8 1/3% more per year. This goes a long way toward increasing the rate at which you repay your principal and build equity, but it won't, unfortunately, cut your repayment term in half, unless you're talking about amazingly high interest rates on long-term loans, such as a 16% or 17% interest rate on a 30-year loan, which is not likely to be something any of us would ever consider.

Mary Jackson
2008-04-17 12:02:00
This calculator is awesome. When I saw how easy it is to pay a little extra a month and how much sooner you can pay it off, I was elated. I owe 8 more years but after using your calculator and determining how much I could afford to pay extra per month, I should wipe it out in just two more. I am going to save quite a bit of money, not to mention getting rid of the debt 5 1/2 years early. Thanks for the calculator!

bill
2008-04-14 13:29:00
Just checking - - - - EDITOR'S COMMENT: Anytime, Dude!

Doug P
2008-02-14 08:23:00
Question. My original loan term is 30 mos. I wanted to find out how much I need to pay extra to turn it into a 10 year term. I"ve made 40 payments. Does the extra payment mean if I start paying the extra payment today it will be paid off in ten years or does it mean ten years from the start of the loan? EDITOR'S REPLY: Excellent question! On this calculator, "Loan Term" refers to the original loan term, and "New Loan Term" refers to the number of years between today and when you want to pay off the loan. "New Loan Term" is not measured from the start of the loan on this calculator.

Pam
2008-02-11 08:07:00
There is still no calculator here. EDITOR'S REPLY: This feature requires the Flash plugin to give it the functionality that makes it such a useful tool. Flash is a common plugin, and is widely used. Once you install it, you can use the calculator. It will come in handy for many other sites, too. Go to http://www.adobe.com/ and click on "Get Adobe Flash Player". Adobe is the same company that brings you "PDF" documents (Adobe Acrobat), Photoshop, and other widely used products. Adobe creates a product you can trust.

chris
2007-12-03 08:35:00
I have a home equity loan at 7.65 bal 16.200 and a fixed at 8.64 bal 42.792. What would be the best way to paid it off early? - - - - EDITOR'S COMMENT: Good question, Chris. Of course, there are more factors involved in making this decision than you have shared with us. Here are some ideas to help you know where to start. Check the terms of both loans and see if either has a prepayment penalty, and to see how extra payments are applied for each loan. Some loans make it easy to make extra payments and apply them straight to the principal, but other loans are not favorable to additional payments. Also consider the age of the loan. Most of the interest on a loan is paid in the first half of the loan term. If the larger (original) loan is many years older than the home equity loan, most if its interest may have been paid already, and a much higher percent of your home equity loan payment may be applied to interest each month. So, the total amount of remaining interest is obviously a factor (the Amortization Calculator on this site helps provide insight into this). However, this factor only applies fully if you plan on keeping the home. If you are going to sell it in five years, only consider the interest you will be saving between now and then. As you see, there are many things to consider. Once you've done your research, run both scenarios (prepaying either loan as quickly the extra payments you are prepared to make will allow) and see which one saves you the most in interest. Also, make sure the return on investment to these extra payments is greater than it would be if you were to pay off other types of debt you may owe, such as auto loans or credit cards. If so, you might do that instead (unless your are currently in a negative equity situation, in which, making extra mortgage payments would be an even better idea).

Trayce
2007-11-04 18:11:00
This actually is the greatest thing since sliced bread!!!

Great Mortgage Resource
2007-10-30 18:12:00
I use your calculators on my website to help visitors calculate their mortgage financing and refinancing savings. Thank you for a great resource. Terry Lamb

bill
2007-10-16 19:20:00
hey this is cool!!!

Marcus
2007-08-17 12:31:00
Great for plannig my retirement.Calculating rental property payment to meet retirement date,thanks!

Fat Kid
2007-08-04 14:37:00
With all the money I will be saving....I can eat more!!!!

jeremiah
2007-07-18 15:55:00
Very nice. I was able to coordinate the amount necessary to pay off a mid-term debt and roll this cash flow into my home loan at the appropriate number of months to nail a figure that fits nicely into my monthly budget. This is very very useful.

robert winter
2007-06-21 12:43:00
If you take the extra money you would spend on paying down your mortgage faster and instead invest it at above your interest rate you WILL over your term of loan make more money investing then if you paid down your loan faster.

AUBREY
2007-06-16 20:07:00
THIS IS GREAT!!! I SAVED THIS ONE IN MY FAVES! IT WILL HELP A LOT...THANKS!!!

Louis Maglie
2007-05-29 14:21:00
Loved the program!! When I saw my current payment right to the penny, I said, WOW !! Thanks for assisting in planning my future projections.

Sheila
2007-04-25 07:19:00
payoff

LANCE LARSON
2007-04-23 17:15:00
Please calculate how fast I can pay my home loan. - - - Perhaps a "Making Extra Payments" calculator.

Marlin O. Trulsen
2007-04-22 14:16:00
There is no calculator here. - - - - - EDITOR'S REPLY: Sorry about that, Marlin. This feature requires the Flash plugin. Once you install the missing plugin, you can use the calculator. Flash is a common plugin, and is widely used. Please accept our apologies for any inconvenience. - C4M Admin. -

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