How Do I Use Early Mortgage Payoff Calculators?

Paying off a mortgage early can save you tens of thousands of dollars. However, knowing how much extra you can pay without getting into trouble financially requires careful planning and budgeting. Fortunately, a number of early mortgage payoff calculators can assist you with the budgeting process.

Principal Balance

When you find an early mortgage payoff calculator that fits your needs, the first piece of information you need is your current principal balance. This is the amount you have left to pay on the loan. Don’t use your original balance, as that won’t give you an accurate picture of your early payoff.


After you enter your principal balance, you’ll need the terms of your loan. This includes your interest rate, the contract date of the mortgage (located in the promissory note) and your current monthly principal and interest payment. Don’t include escrow, as that does not affect the repayment of the principal balance. If you calculate the remaining term using just this information, the calculator should give you your current maturity date. If not, double-check your figures to make sure they’re accurate.

Additional Payments

Once you’ve entered and verified the principal balance and the terms of the loan, you can know determine your additional payments. Depending on the mortgage calculator, you can calculate your new payoff date on a number of different scenarios. First, you can enter an additional monthly payment, $500 for example, that you intend to make every month until the loan as paid off. You can also enter an annual payment, $5,000 for example. Or you can enter a one-time lump sum payment, say $10,000. Whatever you’ve budgeted, the calculator can use that scenario to calculate your early payoff date.


After all the information has been inserted into the proper fields, you’ll select the option to calculate. The new payoff date will appear. If the date is not what you intended, you can go back and adjust the additional principal payment amount and frequency. Do this until you calculate a new early payoff date that's in line with what you’ve planned.


About the Author

Carl Carabelli has been writing in various capacities for more than 15 years. He has utilized his creative writing skills to enhance his other ventures such as financial analysis, copywriting and contributing various articles and opinion pieces. Carabelli earned a bachelor's degree in communications from Seton Hall and has worked in banking, notably commercial lending, since 2001.