Mortgage Payoff Calculator
See how extra monthly or one-time payments shorten your mortgage and cut total interest, with an optional rate change.
Mortgage Payoff Calculator
Baseline Payoff
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Payoff With Extra Payments
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Time Saved
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Baseline Total Interest
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Total Interest With Extra
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Interest Saved
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Remaining balance over time
Year-by-Year Balances and Interest
| Year | Baseline balance (₹) | Balance with extra (₹) | Baseline interest (₹) | Interest with extra (₹) |
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Assumptions & method
- Interest accrues monthly at the annual rate ÷ 12 on the balance at the start of the month. Payments are made at month end and the scheduled payment is L × i ÷ (1 − (1 + i)^−n) for the current balance L and remaining months n.
- Baseline: only the scheduled payment is made. With extra: the same scheduled payment plus your monthly extra, and the one-time extra in the month you choose. Extra amounts go entirely to principal.
- Rate change (adjustable-rate scenario): after the chosen number of years the rate switches to the new rate, and the scheduled payment is recalculated on the then-current balance over the original remaining months. This is how many adjustable loans reset. Enter 0 for a fixed rate.
- Because the payment is recalculated at the reset on the actual balance, the scenario with extras may have a slightly lower scheduled payment after the change. Your monthly extra amount stays the same.
- Payoff dates count from today, one month per payment. Prepayment fees, escrow items, insurance, and lender rules on how extras are applied are not modelled.
- The new rate is a single assumed rate. Real adjustable loans may reset more than once, so treat it as one what-if.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How do extra payments pay off a mortgage faster?
A mortgage payment is mostly interest at the start and mostly principal near the end. When you pay extra, the added amount reduces principal immediately, so every later month accrues interest on a smaller balance. That is why modest extras can remove years from the loan and save a large share of the interest. This calculator runs the full schedule twice, once as written and once with your extras, and compares the payoff date, the total interest and the balance by year. You can also model an adjustable-rate loan by choosing when the rate changes and what it changes to. The same extra payment helps more when it is made early and when the rate is higher, so the one-time payment month is worth testing.