Existing Mortgage Payoff Calculator

Should I Accelerate PayOff of My Existing Loan


This is the question many people ask, after serving their loan for some time. The reason being that after some time, many borrowers find an increase in their disposable incomes, which generates some surplus money and they are not able to find a place to invest, which could generate handsome money for them.

The thumb rule in such situation is very easy. If you can invest the surplus amount such that the interest earned on it is larger than the interest rates on your mortgage loan, then it is better to invest the money there. But if you do not find such place, then it is better to accelerate your mortgage payoff and reduce the interest burden.

How to Calculate the New PayOff Time with Additional Monthly Payments

On this site, we have presented a Mortgage Early Pay off Calculator, which allows you to calculate the additional monthly amount required to pay, in case you want to payoff your loan within a certain period.

But what about the opposite calculations. How to calculate the time frame in which the existing mortgage will be paid off, in case you have already decided the monthly amount, which you can additionally pay. Here we present you a calculator  tailor made for such a situation. You just have to enter the additional monthly payment you can afford, and this existing mortgage payment calculator will calculate the duration in which your existing loan will be paid off.

Inputs Required to be Entered

Following inputs are required to be entered to run this Existing Mortgage Payoff Calculator.

  1. Loan Balance: This is the amount, which you currently owe on your mortgage or loan.
  2. Interest Rate: The annual percentage rate you are paying for this loan.
  3. Monthly Payment: The principal and interest portion of each monthly payment. This may not be the amount you write a check for each month. Depending on the type of loan, your actual payment may include other amounts for escrow, private mortgage insurance (PMI), fees, or property taxes.
  4. Additional Principal: The additional amount you will pay each month (over the required ‘Monthly Payment’ amount) to pay down the principal on your loan.

Output Results Calculated by Early Payoff Calculator

  1. New Monthly Payment: The required ‘Monthly Payment’ plus any ‘Additional Principal’ you want to pay each month. The ‘Early Payoff’ calculations assume you will pay this amount of principal and interest each month from now on until the loan or morgage is paid. Actual payment could include other amounts such as escrow for insurance and property taxes, private mortgage insurance (PMI), fees, and dues.
  2. Early Payoff (column): If you pay additional principal each month your loan or mortgage will be paid earlier than scheduled and you will pay less in interest charges.
  3. Without Early Payoff (column): The payoff time and interest charges if you pay no additional principal each month.
  4. Savings (column): ‘Early Payoff’ compared to ‘Without Early Payoff’ saves you this much time and money.
  5. Payoff Time: Amount of time until the loan is paid off.
  6. Total Interest: The remaining total amount of interest you will pay over ‘Payoff Time’.
  7. Total Paid The remaining total amount of principal + interest you will pay over ‘Payoff Time’.
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Lots of approximations and assumptions have been made while developing the calculators.

Please make your own calculations before making any financial decision.