Servicing
Loan Payoff and Reinstatement Calculator
A to-the-day payoff with per-diem interest, on Actual/365 or Actual/360, plus the reinstatement figure that brings a delinquent note current, counted by actual missed due dates with the same grace window a servicer applies.
Most notes allow 15 days. An installment inside grace is still owed in full, it just carries no fee.
Per-diem accrues on actual calendar days. Notes scheduled on 30/360 quote their payoff on the Actual/365 basis, which is the production servicing convention.
Payoff good through Sep 10, 2026
$144,652.82
per-diem $33.14 per day, 71 days accrued
- Principal balance
- $142,300.00
- Accrued interest (71 days)
- $2,352.82
- Total to pay off
- $144,652.82
Reinstatement: bring the loan current as of Sep 10, 2026
- 2 missed installmentsdue Aug 1, 2026, Sep 1, 2026, counted by actual due date, which is the production rule
- $2,360
- Late feeson 1 of 2 installments, the ones past the 15 day grace window
- $59
- To reinstate
- $2,419
Reinstatement continues the loan; payoff ends it. This lite figure covers scheduled installments plus a flat late fee on each installment past grace, which is how the production assessor charges them. It can't know a servicer's posted charges, recoverable collection costs, escrow arrears, or your state's reinstatement rules. Inside NoteHarbor, the borrower-ready payoff and reinstatement letter reads the actual delinquent installments and posted charges on the live loan.
Illustrative educational tool, not financial advice. Confirm every figure against the note before quoting a borrower. This lite payoff is principal plus accrued interest plus the fees you enter; an official statement may add advances, escrow, and credits.
The two numbers every delinquent-note conversation needs
When a borrower calls about catching up or paying off, the servicer needs two different figures. The payoff ends the loan: principal, plus interest accrued day by day to the good-through date, plus outstanding fees. The reinstatement continues it: the missed installments and late fees that bring the account current. Mixing them up is expensive in both directions.
Why the per-diem matters
Interest does not stop while paperwork moves. A payoff quoted to the 17th falls short if funding lands on the 20th, by exactly three per-diems. That is why every payoff statement carries a good-through date and a per-diem figure, and why this calculator shows both, on the basis your note actually uses.
A worked example
A $120,000 balance at 9%, paid through June 1 and quoted through July 17, accrues 46 days of interest. On Actual/365 the per-diem is $29.59 and the accrued interest is $1,361.10, for a total payoff of $121,361.10. On Actual/360 the same 46 days cost $1,380.00. Same loan, same dates, $18.90 apart. Conventions matter.
Who it is for
Note holders fielding a payoff request, servicers sanity-checking a statement, and buyers estimating the catch-up cost on a delinquent note they are pricing.
Frequently asked questions
How is a loan payoff calculated?
Payoff is unpaid principal plus interest accrued day by day from the date the loan is paid through to the payoff date, plus any outstanding fees or servicer advances, less any unapplied credits. It never includes future unearned interest, so you only pay for interest that has actually accrued.
What is per-diem interest?
One day of interest: balance times the annual rate, divided by the day-count basis of 365 or 360. It is the daily meter on a payoff. Quote a payoff good through Friday, close on Monday, and the figure grows by three per-diems. Payoff statements list it so the closing agent can adjust to the actual funding date.
What is the difference between Actual/365 and Actual/360?
Both count the real calendar days, but Actual/360 divides the annual rate by 360, so each day costs slightly more interest. That basis is common on commercial and hard-money paper. One production convention worth knowing: loans that amortize on a 30/360 schedule conventionally quote payoff interest on the Actual/365 basis.
What is reinstatement, and how is it different from payoff?
Reinstatement brings a delinquent loan current so it continues: the sum of the installments actually missed plus late fees, and in a real servicing file the recoverable collection costs too. Payoff retires the debt entirely. For the same delinquent loan, reinstatement is always the smaller number.
How are missed payments counted?
By actual due date. Every scheduled installment that came due after the paid-through date and on or before today counts, exactly the way a servicer's arrearage statement reads the schedule. Rules of thumb like dividing days late by 30 miscount around grace windows and month lengths, so this tool does not use them. Note that the reinstatement is always counted as of today even when the payoff is quoted forward, because an installment that has not come due yet has not been missed.
Does every missed payment get a late fee?
No. A payment inside the grace window is late but not yet chargeable, so it is owed in full and carries no fee. This calculator applies the same rule the servicing engine applies, skipping any installment whose days late fall within the grace period, and it shows you how many of the missed installments actually earned a fee. Set the grace field to match your note; 15 days is the common default.
Can I hand this figure to my borrower?
Treat it as an estimate. An official payoff or reinstatement letter has to reflect the actual ledger, including posted late charges, escrow arrears, advances, and credits, plus any legal language your state requires. Inside NoteHarbor that letter generates in one click on the live loan.
Does the calculator store my numbers?
No. The quote is computed entirely in your browser. Nothing is saved or sent anywhere, there is no email gate, and there is no sign-up.
Run the numbers here. Service the loan in NoteHarbor.
This calculator is scratch math. NoteHarbor keeps the whole note alive, including amortization, payments, escrow, late fees, statements, and tax forms, for every loan you hold or broker, with the exact same engine behind these numbers.
More free calculators
Financial Calculator
A 10bII-style time-value-of-money calculator. Solve for any of N, I/YR, PV, PMT, or FV, with a one-click amortization schedule.
Amortization Schedule
Turn a loan amount, rate, term, and start date into a full month-by-month payoff table with a running balance chart you can print.
What's My Mortgage Note Worth?
Estimate what a private mortgage note could sell for today at a range of investor yields, and understand why notes trade at a discount.
Note Discount Bid
Solve the most you can pay for a mortgage note and still hit your target yield, then check what the seller's asking price actually earns you.
Seller Carryback Structurer
Structure owner financing three ways at once and compare rate, amortization, and balloon on payment, lifetime interest, and the balloon due.
These calculators are provided for educational and planning purposes only. They are estimates, not financial, tax, or legal advice, and not an offer to buy or sell anything. Figures assume on-time payments and the inputs you enter; your actual loan or transaction may differ.