Closing calculators
Estimate your loan payoff including the daily interest that accrues until the loan is paid, plus any prepayment penalty or escrow shortage. Always request a written payoff letter for the binding figure. This is a planning tool.
A calculator is a starting point. Get a full picture with a direct review of payoff, taxes, title, condition, and timing.
Enter the current principal, the interest rate, the date interest is paid through, and your target payoff date. Add a penalty or escrow shortage if they apply.
Reviewed and updated June 2026
Mortgage interest accrues every day, so the payoff is not just the principal. The per-diem is the principal times the annual rate divided by 365, multiplied by the days from the last paid date to the payoff date. A few days of delay can change the figure, which is why payoff letters carry a good-through date.
The estimated payoff is your principal plus interest accrued to the payoff date plus any penalty or escrow shortage.
A payoff is the principal balance plus interest that has accrued since the last date interest was paid through, plus any fees the loan allows. Because interest accrues daily, the calculation uses a per-diem figure equal to the principal times the annual rate divided by 365. Multiply the per-diem by the number of days to the payoff date and add it to the principal.
Some loans add a prepayment penalty or require an escrow shortage to be settled, and a few subtract an escrow surplus that is refunded after closing. Because the exact figure depends on the servicer and the date, always request a written payoff letter, which states the amount and the date through which it is good.
Per-diem is the daily interest on the loan, equal to the principal times the annual rate divided by 365. Because interest accrues every day until the loan is paid, the payoff includes per-diem interest from the last paid date to the payoff date.
The balance is the principal, while the payoff adds the interest that accrued since your last payment plus any penalty or escrow shortage. The longer the gap to the payoff date, the more per-diem interest is added.
Yes. This is an estimate. The binding figure comes from the servicer in a written payoff letter that states the exact amount and the date through which it is good. Request one before closing.
It is a fee some loans charge for paying off early. Most modern owner-occupied loans do not have one, but some loans do. Check your note or ask the servicer, and add any penalty to the payoff estimate.
The balance on a statement is the principal as of a past date. The payoff adds interest that accrues daily until funds arrive, plus any prepayment penalty, escrow shortage, or recording and statement fees the servicer charges.
Request a written payoff letter, sometimes called a payoff demand or statement, from your loan servicer. It states the exact amount and a good-through date, and the per-diem interest that applies if funds arrive after that date. The calculator is a planning estimate, not the binding number.
This calculator is general information for Chicago-area owners, buyers, and investors. It is not legal, tax, lending, appraisal, or brokerage advice, and rates or rules can change. Verify figures with the appropriate professionals before money moves or documents are signed. Always obtain a written payoff letter from your loan servicer for the binding amount and good-through date.