To use this calculator, enter your current mortgage balance, interest rate, and original loan term. You can also input any extra monthly or one-time payments you plan to make. Choose your repayment option to see how it affects your payoff date and interest savings.
The formula calculates the new payoff date by adjusting the amortization schedule with extra payments. It uses the formula for monthly mortgage payments and recalculates the schedule with extra payments applied.
For example, if you have a $200,000 mortgage at a 3.5% interest rate with 25 years remaining, and you make an extra $100 monthly payment, you can save thousands in interest and pay off your mortgage years earlier.
Ensure that any extra payments are applied to the principal balance. Check with your lender about any prepayment penalties. Regularly review your financial situation to adjust your payment strategy as needed.