Free tool
Payoff per diem calculator
Payoff letters are good through a date. When closing or funding slips past it, the amount owed grows by the per diem every day. Enter what’s on the letter to see what the lender will expect on the day the money arrives.
Enter the payoff amount and both dates.
How it’s worked out
Extra interest is the per diem times the number of days between the good-through date and the day the payoff reaches the lender. If the letter doesn’t show a per diem, it’s roughly the unpaid principal times the interest rate, divided by 365 (some loans use 360).
Example: a payoff of $250,000.00 good through the 10th, with a per diem of $41.10. If the wire lands on the 13th, that’s 3 extra days, or $123.30, for a payoff of $250,123.30.
Don’t just add the per diem
Once the good-through date passes, order an updated payoff. Fees, escrow advances or a payment that posted can change the amount, and some servicers count interest through the day the funds are received. Under Regulation Z, a servicer has to send an accurate payoff statement within 7 business days of a written request, so order early when closing dates move.
On a refinance, remember the right to cancel: funds can’t go out until it ends, so the payoff has to be good through the funding date, not the signing date. The rescission calculator shows that date.
An estimate for planning, not a payoff quote. Always close from a current payoff statement from the servicer.
Never miss an expiring payoff
Closing Desk tracks the payoff good-through date on every open file and warns you when it ends before the file closes or funds.