Mortgage Payoff Chart
Visualize your mortgage balance dropping and equity rising year by year. Enter loan size, rate, and term to see monthly payment, total interest, and a balance vs. equity chart across the full loan.
How to use this tool
- Enter mortgage amount, annual interest rate and loan term in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your monthly payment and the full breakdown beneath it.
Over a 30-year mortgage most of your early payments fund the bank's interest. This chart makes that visible — the crossover point where equity exceeds remaining balance typically happens in the second half of the loan.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
Monthly payment (PMT) = P × r × (1 + r)n ÷ [(1 + r)n − 1]
where P = mortgage amount, r = monthly rate (annual rate ÷ 12), n = term in months.
Equity after m months = P − remaining balance. Total interest = (PMT × n) − P.
How it works
This calculator applies the standard mortgage annuity formula to compute a fixed monthly payment, then traces the loan month by month — subtracting each month's interest charge from the payment to find how much principal is repaid — and reports the outstanding balance and accumulated equity year by year.
The model assumes a fixed rate, no extra payments, and no property taxes or insurance; actual mortgage costs include those additional items.
Worked example
- Mortgage: $120,000; annual rate: 0%; term: 10 years (120 months)
- At 0% interest: monthly payment = $120,000 ÷ 120 = $1,000
- Total cost: $1,000 × 120 = $120,000
- Total interest: $120,000 − $120,000 = $0
Monthly payment: $1,000. Total interest paid: $0. Total cost of mortgage: $120,000.
Common mistakes to avoid
- Assuming early payments are mostly principal — in reality most early payments go to interest, so equity builds far slower than the payment amount suggests.
- Omitting the down payment when entering the loan amount, which understates equity at every point on the chart.
- Confusing the original loan term with the payoff date after refinancing — refinancing resets to a new amortization curve, not the remaining years.
Key terms
- Mortgage amortization
- The schedule of fixed monthly payments that gradually shifts from being mostly interest at the start to mostly principal repayment near the end of the loan term.
- Equity
- The portion of the home's original purchase price that has been paid off; equal to the original loan amount minus the remaining balance (ignoring market value changes).
- Remaining balance
- The outstanding principal still owed on the mortgage at any point in time; it falls slowly in early years when most of each payment covers interest.
- Fixed-rate mortgage
- A home loan where the interest rate and monthly payment stay constant for the entire term, making costs predictable; this calculator models fixed-rate loans only.
- Total interest paid
- The cumulative cost of borrowing over the full loan term, calculated as total payments made minus the original loan amount; for long-term mortgages this often exceeds the principal.
Frequently asked questions
- What is mortgage equity?
- Equity is the portion of the home's value you truly own: home value minus remaining mortgage balance. As you pay down principal, equity rises.
- Does this include property taxes and insurance?
- No — this shows principal and interest (P&I) only. Add your tax and insurance estimates separately to get your full monthly housing cost (PITI).