Loading page
See how extra payments shorten your mortgage.
A mortgage payoff calculator shows how much faster you can clear your loan, and how much interest you save, by paying a little extra each month. It simulates the loan month by month, applying every rupee above the interest due straight to the principal.
Because interest is charged on the outstanding balance, cutting the principal early has a compounding effect — small extra payments can save years of instalments and a large amount of interest.
The loan is repaid when the balance reaches zero. If the payment is less than or equal to the monthly interest, the balance never reduces.
Interest is charged on the remaining balance. Every extra rupee lowers that balance immediately, so less interest accrues in all the months that follow.
If your monthly payment is less than or equal to the interest charged that month, nothing is left to pay down the principal, so the loan can never be repaid at that payment level.
Both help. Regular extra payments start reducing principal sooner, while a lump sum makes a large immediate dent. Earlier is always better because of compounding.
No. It assumes a fixed interest rate for the whole payoff period. On a floating-rate loan the actual timeline will shift if the rate changes.