Mortgage Payoff Calculator Estimate early payoff timelines, model extra payments, and compare refinance vs. overpay strat...
Mortgage Payoff Calculator
Estimate early payoff timelines, model extra payments, and compare refinance vs. overpay strategies — with 2025 U.S. benchmarks.
Extra Payment Impact Formula**:
Each extra dollar paid to principal reduces future interest:
$$\text{Interest Saved} = \text{Extra} \times r \times \text{Remaining Months}$$
Example** ($250K @ 6.8%, 25 yrs left, $200/mo extra): • Original payoff: **Jan 2049**, **$292K interest** • With extra: **Apr 2041**, **$228K interest** • → **94 months saved**, **$64K interest saved**
✅ Pro Tip**: Apply extra payments *early* — $200/mo in Year 1 saves 3× more interest than Year 10.
⚠️ Avoid these costly mistakes:
- Prepayment penalties** — Rare on new loans, but check old ARMs (up to 2% of balance)
- “No-cost” refis with rate hikes** — $0 fees = +0.25–0.5% rate → $10K+ extra interest
- Bi-weekly scams** — $400/mo plan charging $100 setup + $3/mo fee (do it yourself free)
- Interest-only resets** — 5/1 ARM jumps 2–4% → negates payoff progress
✅ Smart Payoff Strategies**:
- Use **bi-weekly payments** (26 half-payments = 13 full/year)
- Refinance only if break-even < 24 months
- Apply tax refunds/bonuses as lump sums
| Strategy | 30-Yr Loan | Interest Saved | Time Saved |
|---|---|---|---|
| Baseline | 360 mo | — | — |
| $100/mo extra | 308 mo | $31,200 | 4.3 yrs |
| $200/mo extra | 268 mo | $64,000 | 7.8 yrs |
| Bi-weekly | 298 mo | $49,500 | 5.2 yrs |
| Refi + $200/mo | 217 mo | $112,000 | 13.9 yrs |
📉 Bi-Weekly Math**:
- Monthly: $1,952 → $23,424/yr
- Bi-weekly: $976 × 26 = **$25,376/yr** (+$1,952)
- Equivalent to **+1 extra payment/year** → ~25% faster payoff
➡️ Standard Payoff
“$250K balance, 6.8%, 25 yrs left, $200/mo extra — when will I be done?”
➡️ Extra Payments
Model $5K lump sum in Year 2, or $300/mo starting in 12 months.
➡️ Refinance vs. Overpay
“7.2% → 5.8% refi + $200/mo extra — or just $400/mo extra?” (Compare interest saved)
➡️ Bi-Weekly
See exact payoff date and interest saved with bi-weekly plan (no third-party fees).
Note: Assumes no prepayment penalties, fixed rate, on-time payments. Extra payments applied to principal.