Calculator Inputs
Example Data Table
| Scenario | Principal | Rate | Days | Fees | Credits | Estimated Payoff |
|---|---|---|---|---|---|---|
| Standard payoff | $245,000.00 | 6.75% | 15 | $60.00 | $1,800.00 | $243,939.52 |
| Delayed closing | $245,000.00 | 6.75% | 20 | $60.00 | $1,800.00 | $244,166.00 |
| Extra principal used | $245,000.00 | 6.75% | 15 | $60.00 | $2,300.00 | $242,432.75 |
Formula Used
Adjusted principal = Principal balance - Extra principal payment.
Daily rate = Annual interest rate / 100 / 365.
Per diem interest = Adjusted principal × Daily rate.
Accrued interest = Per diem interest × Payoff days.
Total fees = Late fee + Recording fee + Wire fee + Inspection fee + Statement fee + Other fees.
Total credits = Escrow credit used + Unapplied funds.
Estimated payoff = Adjusted principal + Accrued interest + Unpaid interest + Total fees + Payoff cushion - Total credits.
How To Use This Calculator
- Enter the current unpaid principal from your latest mortgage statement.
- Add the annual interest rate shown on your loan documents.
- Select the date through which interest was already paid.
- Choose the expected payoff, refinance, sale, or wire date.
- Enter escrow, unapplied funds, fees, and unpaid charges.
- Use the payoff cushion field for possible timing differences.
- Press Calculate Payoff to show the estimate below the header.
- Use CSV or PDF buttons to download the calculated result.
Understanding a Payoff Estimate
A payoff estimate is not the same as a normal balance. A balance usually shows principal only, or it may show recent activity. A payoff estimate includes principal, daily interest, fees, and credits due through a selected date. This tool helps you test those moving parts before you request an official payoff quote.
Why Daily Interest Matters
Mortgage interest usually accrues each day between payments. The calculator converts the annual rate into a daily rate. It then multiplies that rate by the remaining principal and the number of payoff days. Even a small date change can shift the final amount. That is why the payoff date should match your expected wire, closing, or refinance date.
Escrow and Fee Adjustments
Some loans include escrow balances. A positive escrow balance may reduce the net amount due, depending on servicer handling and timing. Fees may increase the payoff. Common examples include late charges, recording costs, inspection charges, wire fees, statement costs, or other account expenses. This calculator lets you enter each amount separately, so the estimate stays transparent.
Advanced Planning Uses
Borrowers often compare several payoff dates before selling, refinancing, or paying a loan early. You can enter extra principal payments, unpaid charges, prepaid interest, escrow credits, and a payoff cushion. The cushion can cover timing delays or small lender adjustments. It is not a guarantee. It is only a planning amount.
Reading the Result
The result shows principal, estimated accrued interest, fees, credits, cushion, and final payoff. It also shows per diem interest. Per diem interest is useful when a closing date moves. Add one per diem amount for each extra day. Subtract one per diem amount for each earlier day, when allowed by the lender.
Important Limits
This calculator is for planning only. It does not replace an official payoff statement. Servicers may use exact contractual rules, cutoff times, unpaid items, escrow policies, and special fees. Always confirm the final amount with the loan servicer before sending funds.
Best Workflow
Start with your latest statement. Enter the unpaid principal, annual rate, and last paid-through date. Add known fees. Use a future payoff date. Compare two or three dates before choosing one. Then request the official written quote.
FAQs
Is this an official payoff statement?
No. It is only a planning calculator. Always request the official payoff statement from your loan servicer before wiring funds, refinancing, selling, or closing the account.
Why is payoff higher than my principal balance?
A payoff may include daily interest, unpaid charges, statement fees, recording fees, wire fees, late fees, and other account costs. Principal alone usually does not show the final closing amount.
What is per diem interest?
Per diem interest is the estimated interest charged for one day. It helps you adjust the payoff if your closing date moves forward or backward.
Should I subtract my escrow balance?
Only subtract escrow when your servicer applies it as a payoff credit. Some escrow balances are refunded later instead. Confirm the exact handling before sending payment.
What date should I use?
Use the date when funds are expected to reach the servicer. If a closing or wire may be delayed, test a later date and compare the difference.
Can I include extra principal?
Yes. Enter any extra principal payment that will post before payoff. Do not include payments that are pending, uncertain, or not yet accepted by the servicer.
Why add a payoff cushion?
A cushion can help estimate small changes from timing, fees, or rounding. It is not required, and it does not replace the exact official payoff amount.
Can I download the result?
Yes. After entering values, use the CSV or PDF button. The download includes the main payoff breakdown for records, planning, or review.