Mortgage Payoff Goal Calculator

Calculate how to pay off your mortgage faster by setting a target payoff date

Current Mortgage Details

Current Balance

Interest Rate (%)

Remaining Term (Years)

Current Monthly Payment

Payoff Goal

Target Payoff Year

Target Payoff Month January February March April May June July August September October November December

Payoff Plan Results

Additional Monthly Payment Needed

$0.00

Extra amount to pay each month to reach your goal

New Payoff Date

--

Estimated date your mortgage will be paid off

Total Interest Savings

$0.00

Interest you'll save by paying off early

Payoff Timeline Comparison

Payment Comparison

Metric	Current Plan	Accelerated Plan	Difference
Monthly Payment	$0.00	$0.00	$0.00
Payoff Date	--	--	--
Total Interest	$0.00	$0.00	$0.00
Total Cost	$0.00	$0.00	$0.00

Mortgage Payoff Strategies

1. Make Biweekly Payments:
- Split your monthly payment in half and pay every 2 weeks
- Results in 13 full payments per year instead of 12
- Can shave 4-8 years off a 30-year mortgage

2. Round Up Payments:
- Round up your payment to the nearest $100
- Small increases make a big difference over time

3. Make One Extra Payment Per Year:
- Apply lump sums (tax refunds, bonuses) to principal
- Or divide by 12 and add to each monthly payment

4. Refinance to Shorter Term:
- Switch from 30-year to 15-year mortgage
- Higher payments but much less interest overall

5. Recast Your Mortgage:
- After large principal payment, lender recalculates amortization
- Keeps same term but lowers monthly payments

6. Make Principal-Only Payments:
- Specify extra payments should go toward principal
- Reduces balance faster than regular payments

This calculator provides estimates only. Consult your lender for exact payoff amounts. Print Results

A Mortgage Payoff Goal Calculator helps homeowners determine how much extra they need to pay each month to eliminate their mortgage by a target date. This tool is ideal for borrowers who want to:
✅ Save on interest by paying off the loan early.
✅ Become debt-free faster (e.g., before retirement).
✅ Optimize extra payments to reach their goal efficiently.

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1. How the Calculator Works

The calculator determines the additional monthly payment required to pay off the mortgage by a desired date, factoring in:

• Current loan balance

• Interest rate

• Remaining term

• Target payoff year

Key Formula:

The required extra payment is calculated by adjusting the standard amortization formula to fit the shortened timeline.

$$\text{New Monthly Payment}=P\times \frac{r(1+r{)}^n}{(1+r{)}^n-1}$$

Where:

• $P$ = Current loan balance

• $r$ = Monthly interest rate

• $n$ = Remaining months (based on target date)

The extra payment needed = New Monthly Payment – Original Monthly Payment.

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2. Example Calculation

Current Loan Details:

• Balance: $300,000

• Interest rate: 4%

• Remaining term: 25 years (300 months)

• Current monthly payment: $1,583 (P&I)

Goal: Pay off the mortgage 5 years early (in 20 years instead of 25).

Step 1: Calculate the new required monthly payment for a 20-year payoff.

$$\text{New Payment}=300,000\times \frac{0.00333(1+0.00333{)}^{240}}{(1+0.00333{)}^{240}-1}=\ast \ast \mathrm{\$}1,817\ast \ast$$

Step 2: Subtract the original payment to find the extra amount needed.

$$\text{Extra Payment}=\mathrm{\$}1,817-\mathrm{\$}1,583=\ast \ast \mathrm{\$}234\mathrm{/}month\ast \ast$$

Result:

• Paying an extra $234/month clears the mortgage 5 years early.

• Total interest saved: ~$28,000.

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3. Benefits of Using a Payoff Goal Calculator

Feature	Advantage
Custom Payoff Date	Set any target (e.g., before retirement, kids' college).
Interest Savings	See how much you save by shortening the loan term.
Lump Sum vs. Extra Monthly	Test whether one-time payments or recurring extras work better.
Budget Planning	Adjust payments without refinancing.

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4. Strategies to Pay Off a Mortgage Faster

1. Biweekly Payments (Half-payment every 2 weeks = 13 full payments/year).

2. Round Up Payments (e.g., Pay $2,000 instead of $1,817).

3. Annual Lump Sums (Apply tax refunds/bonuses to principal).

4. Refinance to a Shorter Term (e.g., 30yr → 15yr).