Financial Tool
Mortgage Payoff Calculator
Use the Mortgage Payoff Calculator to estimate monthly payments, total interest paid over the life of the loan, and a full amortization schedule. Plan ahead by adjusting the loan amount, interest rate, and term.
Loan details
Your mortgage
Monthly payment
$1,896
Total paid
$682,633
Total interest
$382,633
Principal vs Interest
Principal (43.9%)Interest (56.1%)
How to use this calculator
- 1
Enter the loan amount
Input the total mortgage principal you are borrowing.
- 2
Set your interest rate
Enter the annual percentage rate (APR) offered by your lender.
- 3
Choose the loan term
Select 15, 20, or 30 years based on your repayment plan.
- 4
Analyze the results
Review your monthly payment, total interest, and principal-vs-interest breakdown.
The mortgage payment formula
This standard amortization formula calculates your fixed monthly mortgage payment.
M = P × [r(1+r)^n] / [(1+r)^n - 1]- M
- Monthly payment
- P
- Principal loan amount
- r
- Monthly interest rate (annual / 12)
- n
- Total number of payments (years × 12)
Frequently asked questions about Mortgage Payoff Calculator
- What is included in a mortgage payment?
- A typical mortgage payment includes principal and interest. Property taxes, homeowners insurance, and PMI (if applicable) are often added as PITI but are not calculated here.
- How does a shorter term affect my payment?
- A shorter term increases your monthly payment but dramatically reduces the total interest paid over the life of the loan.
- How is my monthly mortgage payment calculated?
- Monthly payments are calculated using the loan amount, interest rate, and loan term based on a standard amortization formula.
- What is an amortization schedule?
- An amortization schedule shows every loan payment, including how much goes toward principal and interest over the life of the mortgage.
- Can I pay off my mortgage early?
- Yes. Making additional payments toward the principal can significantly reduce total interest and shorten the loan term.
- What is mortgage principal?
- Principal is the original amount borrowed before interest and other charges are added.
- What is PMI?
- Private Mortgage Insurance (PMI) is often required when your down payment is less than 20% of the home's purchase price.
- How much down payment should I make?
- A larger down payment reduces your loan amount, lowers monthly payments, and may eliminate PMI requirements.
- Should I choose a 15-year or 30-year mortgage?
- A 15-year mortgage usually has higher monthly payments but much lower total interest. A 30-year mortgage offers lower monthly payments but costs more overall.
- What affects my mortgage interest rate?
- Credit score, loan term, down payment, debt-to-income ratio, market conditions, and lender policies all influence mortgage rates.
- Can refinancing lower my payment?
- Refinancing may reduce your monthly payment if interest rates decrease or you extend your loan term.
- Does this calculator include taxes and insurance?
- No. This calculator estimates principal and interest payments only unless additional costs are entered separately.