Mortgage Payoff Calculator
See How Extra Monthly Payments and Bi-weekly Payments Can Shorten Your Loan Term and Reduce Interest.
Your Estimated Calculation Results
| Original | Extra Pay | Difference | Bi-Weekly | Difference | |
|---|---|---|---|---|---|
| Monthly Pay | - | - | |||
| Total Payments | |||||
| Total Interest | |||||
| Remaining Payment | |||||
| Remaining Interest | |||||
| Payoff In |
Payment Schedule Comparison
| Original | Extra Payment | Bi-Weekly Payment | |||||||||||
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| Year | Date | Interest | Principal | Payment | Balance | Interest | Principal | Payment | Balance | Interest | Principal | Payment | Balance |
| Original | Extra Payment | Bi-Weekly Payment | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Month | Date | Interest | Principal | Payment | Balance | Interest | Principal | Payment | Balance | Interest | Principal | Payment | Balance |
Why Is the Biweekly Result Different from a Mortgage Calculator?
The biweekly result on this page may differ from the result shown by another mortgage calculator because different calculators use different definitions of “biweekly payments.”
This calculator uses a scheduled extra-payment approach. It keeps your regular monthly payments in place and adds an extra amount equal to one-half of the monthly payment every six months. In practical terms, that creates two additional half-payments per year, or one extra full monthly payment annually.
This calculator: scheduled semiannual extra payment
Under this method, you continue making your normal monthly mortgage payments. Twice a year, the calculator applies an additional principal payment equal to half of your regular monthly payment.
- 12 regular monthly payments are made each year.
- Two additional half-payments are added during the year.
- The two half-payments equal one extra full payment annually.
- The additional amount is applied to reduce the loan balance.
This approach may be useful for homeowners who prefer scheduled semiannual payments or who receive annual bonuses, tax refunds, commissions, or other seasonal income.
Many mortgage calculators: true biweekly payments
A true biweekly payment plan divides the monthly payment in half and schedules a payment every two weeks. Because there are 52 weeks in a year, this results in 26 half-payments annually.
- 26 half-payments are made each year.
- Those payments equal 13 full monthly payments.
- One additional full payment is made over the course of the year.
- Payments are typically made every 14 days rather than once a month.
True biweekly payments may be convenient for borrowers who are paid every two weeks and want their mortgage schedule to match their paychecks. However, the exact savings can vary depending on the lender's payment processing rules, payment timing, and whether extra funds are applied directly to principal.
How to compare the two approaches
The easiest way to understand the difference is to compare the Biweekly Schedule on this page with the biweekly schedule produced by another mortgage calculator. Look at the payment dates, number of payments per year, timing of extra principal reductions, total interest, and projected payoff date.
The results may not match because one calculator may model a scheduled semiannual extra payment while another models 26 payments made every two weeks. Neither result should be treated as a lender quote. Always confirm how your mortgage servicer handles additional or partial payments before changing your payment schedule.
Mortgage Payoff Calculator FAQ
Does making extra mortgage payments always reduce interest?
Paying extra toward principal generally reduces the balance on which future interest is calculated. This can reduce total interest and may shorten the payoff period. Your actual savings depend on your loan balance, interest rate, payment timing, and lender rules.
Are taxes and homeowners insurance included?
No. This calculator focuses on mortgage principal and interest. It does not include property taxes, homeowners insurance, HOA dues, mortgage insurance, or other escrow charges.
What does “Extra Monthly Pay” mean?
It is the additional amount added to your regular principal-and-interest payment each month. For example, entering $200 means the calculator evaluates a payment plan that applies an additional $200 each month.
How is the yearly extra payment applied?
The yearly extra payment is modeled as an additional payment once per year. The timing of that payment can affect the final savings, so your lender's payment-posting policy should be used for an exact estimate.
Is this the same as making a true biweekly mortgage payment?
Not necessarily. This calculator models regular monthly payments plus an additional half-payment every six months. A true biweekly plan makes 26 half-payments per year, usually one every two weeks. These methods can produce different payoff dates and interest savings.
Why does the calculator show a different payoff date than my lender?
Differences may result from payment posting dates, daily versus monthly interest calculations, rounding, escrow charges, late fees, servicing rules, or how extra payments are applied. Use the estimate as a planning tool and compare it with your lender's official amortization schedule.
Can I make a one-time principal payment?
Yes. Enter the amount in the Extra One-time Pay field to estimate the effect of applying a lump-sum payment at the beginning of the extra-payment plan.
Should I tell my lender when I make an extra payment?
Check with your mortgage servicer. Some lenders require you to select an option such as “apply to principal” to ensure the extra amount is credited correctly. Your loan documents may also explain any prepayment terms or restrictions.
Should I pay off my mortgage early or invest the extra money?
The better choice depends on your interest rate, tax situation, investment goals, emergency savings, risk tolerance, and other debts. Consider building an emergency fund and paying high-interest debt before committing all available cash to mortgage prepayments.
Disclaimer: This calculator provides estimates for educational and planning purposes only. Actual mortgage results may vary based on lender policies, payment processing dates, loan terms, rounding, daily interest calculations, prepayment rules, and other factors. Consult your mortgage servicer or a qualified financial professional for advice about your specific loan.
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