Mortgage Payout Calculator
A mortgage payoff is not the same number as your loan balance. Interest accrues every day between your last payment and the day the money actually lands, and your lender will add payoff fees on top. This mortgage payout calculator builds the exact settlement figure: current balance plus per-diem interest for every day until payoff, plus any prepayment penalty and fees, with the “good through” date your number is valid for.
Quick Answer
A $285,000 balance at 6.75% accrues $52.71 of interest every day. With 22 days until the payoff funds and $60 in servicer fees, the total payout is $286,219.52, good through the payoff date. This is a planning estimate: the servicer's payoff statement is the binding figure.
Why the payoff is bigger than your balance
Your mortgage balance is a snapshot from your last statement. Between that date and the day the payoff money actually reaches the servicer, interest keeps accruing daily. Lenders quote the payoff as "good through" a specific date precisely because of this moving target: every extra day adds one more day of per-diem interest. If you only need that daily figure on its own, the mortgage per-diem calculator computes it separately.
Unpaid principal from your latest statement, e.g. $285,000.
Balance × rate ÷ 365 × days until funding. $52.71 × 22 = $1,159.52.
Prepayment penalty (if any) plus recording, wire, and statement fees.
The total is valid only through that date. Fund late and the number grows.
The formula is simple: payout = balance + (balance × rate ÷ 365 × days) + penalty + fees. What trips people up is forgetting the middle term entirely and wiring exactly the statement balance, which leaves a small shortfall that keeps accruing interest.
Typical payoff fees, and the penalty question
Most conventional, FHA, and VA loans originated in the last decade carry no prepayment penalty: federal rules sharply limit them, and most lenders dropped them. The Consumer Financial Protection Bureau explains what a prepayment penalty is and when one can still apply, usually only if you pay off the whole loan within a few years of closing. But payoff fees are normal and almost never itemized on your statement.
| Fee | Typical range | What it covers |
|---|---|---|
| Payoff statement fee | $0 - $50 | Preparing the official payoff quote |
| Wire / processing fee | $15 - $35 | Receiving the payoff funds |
| Recording / reconveyance | $25 - $100 | Releasing the lien at the county |
| Prepayment penalty | $0 (usually) | Only if your note includes one; verify before assuming |
Ranges reflect common servicer schedules; your lender's exact fees appear only on the payoff statement.
What this estimate leaves out. A payoff statement can also include an escrow shortage or credit, unpaid late charges, and other amounts that have not reached a monthly statement yet, so the binding statement can differ from this planning figure by those items. An escrow account holds part of your monthly payment for taxes and insurance, and its balance at payoff time is settled on the statement, not in this calculator. If the statement looks wrong, Regulation X gives you an error-notice process, described in Regulation X, Section 1024.36.
- Wire the payoff amount, never the statement balance: the per-diem gap is the classic underpayment.
- Build in a buffer day or two. If funding slips past the good-through date, you owe more.
- Order the official payoff statement as soon as a sale or refinance is real: this calculator is for planning, the statement binds the lender.
Payoff quote vs payoff statement: which one you need
A payoff quote is an estimate, the kind this calculator produces, or the number a broker runs when comparing whether a refinance beats keeping the current loan. A payoff statement is the official, binding document from your loan servicer, valid through a stated date, with the per-diem figure listed so everyone can adjust for late funding. Use quotes to plan and compare. One more post-payoff point: once the loan is gone there is no more mortgage interest to deduct, and the rules for the deduction while the loan was open are in IRS Publication 936. Order the statement when money is actually moving: title companies and refinance lenders will not close on a quote. Under Regulation Z, a servicer must provide an accurate payoff statement within seven business days of a written request, as set out in Regulation Z, Section 1026.36.
If you are weighing payoff against refinancing, run the comparison with today's rates first (Freddie Mac's Primary Mortgage Market Survey tracks current market rates): the mortgage payment calculator shows what the new loan would cost, and the additional payment mortgage calculator shows what happens if you attack the current loan with extra principal instead. Two extra payments a year can shave years off a 30-year note; the bi-weekly mortgage calculator models that schedule exactly, and the offset mortgage calculator shows how keeping cash in a linked account cuts the interest the same way.
What competing payoff calculators get wrong
Most tools labeled "mortgage payoff calculator" answer a different question: how fast extra payments retire the loan. That is useful, but it is not a payout figure, and using an accelerated-payoff number as a settlement amount leaves a shortfall. The few settlement-style calculators skip the good-through date, so users cannot tell when their number expires. This calculator targets the settlement intent directly: balance, honest per-diem accrual to a stated date, and itemized fees, with the statement-versus-quote distinction spelled out.
Frequently Asked Questions
Interest accrues daily between your last payment and the funding date. On a $285,000 balance at 6.75%, each day adds $52.71. Add 22 days and payoff fees, and the payout runs about $1,220 above the statement balance.
It is the last date the quoted total stays valid. If funding arrives later, add one more day of per-diem interest per day of delay, or request an updated statement.
Probably not: most modern conventional, FHA, and VA loans have none. But do not assume: check your promissory note or ask your servicer, because older or non-QM loans can include one.
The statement. A quote is fine for planning, but title companies and lenders close only on the servicer's official payoff statement.
The loan stays open with a small residual balance that keeps accruing interest. Servicers resolve it with a small follow-up payment, but it delays the lien release.
Yes. Request one from your servicer by phone or online; federal rules require them to provide it within seven business days of your request.
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References
- Consumer Financial Protection Bureau. What Is a Payoff Amount and Is It the Same as My Current Balance? Accessed October 25, 2026.
- Consumer Financial Protection Bureau. Regulation Z, Section 1026.36: Prohibited Acts or Practices and Certain Requirements for Credit Secured by a Dwelling. Accessed October 25, 2026.
- Consumer Financial Protection Bureau. What Is a Prepayment Penalty? Accessed October 25, 2026.
- Consumer Financial Protection Bureau. What Is an Escrow or Impound Account? Accessed October 25, 2026.
- Consumer Financial Protection Bureau. Regulation X, Section 1024.17: Escrow Accounts. Accessed October 25, 2026.
- Consumer Financial Protection Bureau. Regulation X, Section 1024.36: Error Resolution Procedures. Accessed October 25, 2026.
- U.S. Department of Housing and Urban Development. Buying a Home. Accessed October 25, 2026.
- Internal Revenue Service. Publication 936: Home Mortgage Interest Deduction. Accessed October 25, 2026.
- Freddie Mac. Primary Mortgage Market Survey. Accessed October 25, 2026.
- U.S. Department of Housing and Urban Development. Let FHA Loans Help You Buy a Home. Accessed October 25, 2026.