How to read the payoff comparison
The calculator first estimates your scheduled principal-and-interest payment from the current balance, rate and remaining term. It then applies your extra monthly or one-time principal payments month by month so you can compare payoff date, interest saved and time saved.
Example
If your balance is $280,000 at 6.25% with 24 years remaining, adding $200 per month reduces principal faster than the scheduled payment alone. The exact time saved depends on the current payment, rate and how the servicer applies the extra amount.
Common mistakes
Tell the servicer that extra payments should go to principal when that option is available. If extra money is held as a future payment or applied to escrow, the interest savings may not match the estimate.
What this does not include
This is not a lender payoff quote. Ask your servicer how extra payments are applied, whether prepayment penalties exist and whether escrow, fees or a formal payoff statement affect the amount needed to close the loan.
References
- Consumer Financial Protection Bureau: owning a home, accessed 2026-05-16.
Last reviewed: 2026-05-16