Mortgage Payoff Date Calculator

How the Mortgage Payoff Date Calculator works

How the mortgage payoff date calculator works

It runs the loan forward one month at a time from today. Each month the balance grows by a twelfth of the yearly rate and then falls by your payment. When the balance reaches zero, the number of months is added to the current month to give the payoff date.

Using figures from your statement

Use the outstanding balance, not the amount you first borrowed, and the rate you pay now. If your rate is fixed for a few years and then changes, the date shown assumes today's rate lasts for the whole term, so rerun it when your deal ends.

Bringing the date forward

Add an amount under Extra each month to see how much sooner you finish. Even small regular overpayments cut years off a long mortgage, because each one reduces the balance that interest is charged on. Check whether your lender limits overpayments or charges a fee.

Payoff formula and worked examples

The formula for each month is new balance = balance × (1 + rate ÷ 1200) − payment, repeated until the balance reaches zero.

Worked example 1: 180,000 left at 5% with 1,200 a month is paid off in 19 years 8 months, with 103,067 of interest still to pay.

Worked example 2: paying 1,400 a month instead clears it in 15 years 5 months, saving 4 years 3 months and 24,732 of interest.

Use the table to see how many years are left at different monthly payments.

Time left on 180,000 at 5% for monthly payments from 1,000 to 2,000.

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