What-if scenarios
Test payment strategies without changing your actual loan.
What-If mode lets you explore different payoff approaches in a safe sandbox. Add hypothetical extra payments, see instant impact on your payoff date and interest savings, then decide which strategy works for your financial situation—all without affecting your actual loan tracking.
What you'll learn:
How to create What-If scenarios
Types of payments you can test
Understanding scenario results
Comparing multiple strategies
When to use What-If vs committing to real extra payments
What Are What-If Scenarios?
Think of What-If mode as a financial calculator for your specific loan.
Instead of wondering "What would happen if I added $200/month?" you can:
Enter that hypothetical payment
See exact impact instantly
Review updated payoff date and interest saved
Compare to your current plan
Decide if it's worth it
The key difference: What-If scenarios don't change your actual loan. They're temporary projections you can create, compare, and discard without consequences.
Why Use What-If Scenarios?
Before Committing to Extra Payments
Question: "Should I add $300/month to my mortgage or invest it?"
What-If answer: See exactly how much you'd save in interest and how much sooner you'd pay off. Compare that to potential investment returns.
Example:
$300/month extra on $378k loan at 5.625%
Saves $105,672 in interest
Pays off 8.3 years sooner
That's ~$12,725/year in interest savings
Now you can make an informed decision
Testing One-Time Windfalls
Question: "I got a $10,000 bonus. Should I put it toward my mortgage?"
What-If answer: See the lifetime impact of that single lump sum payment.
Example:
$10,000 lump sum on $378k loan at 5.625% (year 7)
Saves $36,840 in interest
Pays off 1.8 years sooner
That's 3.68x return on your $10,000
Comparing Different Strategies
Question: "Is it better to make small monthly extras or save up for annual lump sums?"
What-If answer: Test both approaches and compare results side-by-side.
Example comparison:
The difference? Monthly payments reduce balance sooner, so you save slightly more interest overall.
Accessing What-If Mode
From Dashboard: Tap the Analytics in the bottom tab bar and locate the What-if Scenario Explorer card. Click on any of the mini cards to access the What-If view:
Creating a Scenario
Choose Scenario Type
PayOff Pro offers three What-If scenario types:
Lump Sum Payment
Test one-time extra payment
Example: "What if I pay $5,000 from my tax refund?"
Recurring Extra Payment
Test consistent monthly additions
Example: "What if I add $250 every month?"
Goal Based
Enter the year you want to finish paying mortgage
Example: "What if I want to payoff in 22 years, how much extra on monthly basis can i add?"
Select the type that matches what you want to test.
Enter Payment Details
For Lump Sum Payment:
Amount: How much extra you'd pay (e.g., $5,000)
Immediate impact
For Recurring Extra Payment:
Amount: How much extra per month (e.g., $250)
Start Date: When you'd begin (usually "Next Payment" or specific date)
Frequency:
Every month (most common)
Every quarter
Twice per year
Annually
For Goal-Based Scenario:
Target Payoff Date: When you want to be debt-free (e.g., "Dec 2030")
PayOff Pro calculates: How much extra per month you'd need to hit that goal
Understanding Scenario Results
Payoff Date Acceleration
What it shows: How much sooner you'd own your home outright
Why it matters: Time has value. Being payment-free 5 years sooner means:
5 years without mortgage payments
5 years of freed-up cash flow for other goals
5 years of complete home ownership
Consider: What would you do with that extra cash flow? Invest it? Travel? Early retirement?
Interest Savings
What it shows: Total interest not paid vs original schedule
How it works: Every extra dollar reduces your balance, which reduces interest calculated on that balance for all remaining months.
The compounding effect:
$100 extra in month 1 might save $368 in lifetime interest
$100 extra in month 300 might save $28 in lifetime interest
Same amount, vastly different savings depending on when you pay it.
Return on Investment (ROI)
Calculate ROI:
Example:
Plus: You also get payoff acceleration (4.7 years sooner)
Compare to alternatives: Is 32% guaranteed return plus 4.7 years of freedom better than other uses of that money?
Real-World Strategy Examples
Strategy 1: The Rounding Method
What you test: Round monthly payment to nearest $100
Example:
Current payment: $2,175.98
Rounded up: $2,200.00
Extra per month: $24.02
Results:
Saves: $8,926 in interest
Payoff: 1.1 years sooner
Total extra paid: $8,647
ROI: 1.03x return (3% gain) plus 1.1 years freed
Why it works: So small you won't notice, but compounds over decades.
Strategy 2: The 13th Payment Method
What you test: Make one extra full payment per year
Example:
Monthly payment: $2,175.98
Extra annual: $2,175.98 (divided into $181.33/month)
Results:
Saves: $43,197 in interest
Payoff: 4.4 years sooner
Total extra paid: $50,215
ROI: 0.86x direct (14% loss on interest alone) But: You're 4.4 years payment-free, worth $114,823 in freed cash flow
Why it works: Mathematically similar to adding ~8% to every payment. Significant acceleration.
Strategy 3: The Windfall Strategy
What you test: Annual bonus or tax refund applied to principal
Example:
Bonus: $5,000 per year
Applied every January
Results:
Saves: $113,429 in interest
Payoff: 9.8 years sooner
Total extra paid: $98,500 (over 20 years before payoff)
ROI: 1.15x return (15% gain) plus 9.8 years freed
Why it works: Large chunks of principal reduction create massive interest savings.
Strategy 4: The Aggressive Payoff
What you test: "I want to be debt-free in 15 years"
Goal-based calculation:
Current: 30 years remaining
Goal: 15 years
Required extra: $846.50/month
Results:
Saves: $144,876 in interest
Payoff: Exactly 15 years (as requested)
Total extra paid: $152,370
ROI: 0.95x direct (5% loss on interest alone) But: You're mortgage-free 15 years sooner, worth $391,778 in freed cash flow
Why it works: Extreme acceleration if cash flow supports it.
Strategy 5: The Hybrid Approach
What you test: Consistent monthly + annual windfall
Example:
Monthly extra: $150
Annual bonus: $3,000
Results:
Saves: $86,742 in interest
Payoff: 7.9 years sooner
Total extra paid: $58,950
ROI: 1.47x return (47% gain) plus 7.9 years freed
Why it works: Combines consistency with opportunistic lump sums.
Comparing Multiple Scenarios
Create several scenarios to compare approaches:
Tap New Scenario after viewing first
Enter different strategy
Tap Compare Scenarios
View side-by-side results
Comparison View Shows:
Monthly Extra
$0
$100
$200
$500
Total Extra Paid
$0
$15,860
$31,720
$79,300
Interest Saved
$0
$29,874
$70,448
$144,876
Payoff Date
Jul 2038
Feb 2036
Aug 2031
Oct 2023
Years Sooner
0
2.4 yrs
6.9 yrs
14.8 yrs
At a glance: See how different amounts affect your outcomes.
When to Commit vs Keep Testing
Signs You Should Commit
You're confident in the strategy:
Cash flow supports the extra payment
Results align with your financial goals
You've compared alternatives and this wins
Action: Exit What-If mode → Add extra payment to your actual loan
Signs You Should Keep Testing
You're not sure yet:
Need to discuss with spouse/financial advisor
Want to test more variations
Comparing to other uses of money (investing, debt payoff, savings)
Action: Save scenario results for future reference, continue testing
Transitioning from What-If to Real
When you're ready to commit:
Note the extra payment amount from your chosen scenario
Exit What-If mode
Go to Extra Payments tab in the Schedule tab.
Add actual extra payment with same details
Your real schedule now matches your What-If scenario
Advanced What-If Techniques
Testing Life Events
Scenario: "What if I get a raise in 6 months and can pay $300 extra starting then?"
Setup:
Create scenario with $300/month recurring
Start date: 6 months from now
See impact of delayed start
Insight: Even delayed extra payments have significant impact. $300/month starting in 6 months still saves $95,000+ in interest.
Testing Conservative vs Aggressive
Create two extremes:
Conservative: $50/month (what you're certain you can afford)
Aggressive: $500/month (stretching your budget)
Compare:
Conservative: Saves $14,928, 2.1 years sooner
Aggressive: Saves $144,876, 14.8 years sooner
Find middle ground: Maybe $200/month balances impact with comfort.
Testing Combination Strategies
Scenario: "What if I do $100/month PLUS annual $2,000 bonus?"
Setup:
First scenario: $100/month recurring
Second scenario: $100/month + $2,000 annual
Compare results
Insight: Combined approach often yields best risk/reward balance.
Common Questions
Do What-If scenarios affect my actual loan?
No. What-If mode is completely separate. Your actual loan tracking remains unchanged until you explicitly add real extra payments.
Think of it as: A calculator that shows you possibilities without commitment.
Can I save What-If scenarios?
Currently: What-If scenarios are temporary. You can screenshot results for reference, but scenarios don't persist.
How accurate are What-If projections?
Very accurate for standard amortization. PayOff Pro uses the same formulas for What-If scenarios as for your actual loan.
Assumptions:
Interest rate stays constant (doesn't account for ARM adjustments)
You make all payments on time
No loan modifications or refinancing
Within those constraints: Results are bank-grade accurate.
Can I test adjustable-rate scenarios?
Not directly. PayOff Pro assumes fixed rates. If you have an ARM:
Should I prioritize mortgage payoff or investing?
What-If helps you decide:
Calculate mortgage ROI:
Interest saved ÷ total extra paid = direct ROI multiplier
Add value of freed cash flow (years sooner × annual payment)
Compare to investing:
Expected investment return (e.g., 7% average stock market)
Investment risk vs guaranteed mortgage savings
Tax implications (mortgage interest deduction vs investment taxes)
General guidance:
If mortgage rate > expected investment return: Prioritize mortgage
If investment return > mortgage rate: Consider investing
If close: Personal preference (guaranteed savings vs growth potential)
In the end, some financial decisions are emotional rather than rational. And nothing stops you from doing both if you have the means.
Tips for Effective What-If Testing
Start with Your Current Extra Payments
If you're already paying extra:
First What-If: Replicate your current strategy
Verify results match your actual projections
Now test variations to optimize
Why: Confirms accuracy and gives you baseline for comparison.
Test Incrementally
Don't just test extremes:
$50, $100, $150, $200, $250, $300...
See how each increment affects results
Find the "sweet spot" for your budget
Pattern recognition: You'll notice diminishing returns at higher amounts (each $50 saves less than the previous $50).
Consider Opportunity Cost
For every What-If scenario, ask:
What else could I do with this money?
Would investing it potentially yield more?
Do I have higher-interest debt to pay first?
What-If shows you mortgage impact. You must evaluate alternatives separately.
Document Your Findings
Before committing to extra payments:
Screenshot What-If results
Note date, loan balance, and assumptions
Save for future reference
Why: Six months later, you might wonder "Why did I decide to pay $200/month?" Screenshots remind you of the projected impact.
Related Features
Extra Payments When you're ready to commit, add real extra payments to your actual loan.
Learn more: Track Extra Payments →
Payment Schedule What-If scenarios show you an alternate payment schedule. View your actual schedule to compare.
What-If Mode Empowers Decisions
The power of What-If scenarios isn't just seeing numbers—it's understanding trade-offs:
You can test:
Small consistent extras vs occasional windfalls
Aggressive payoff vs moderate acceleration
Starting now vs waiting 6 months
You can compare:
Interest savings vs investment returns
Time freedom vs current cash flow
Different life event scenarios
You can decide: With real numbers, specific to your loan, showing exact impact.
That's financial confidence through clarity.
Last Updated: 2025-10-16 Guide Version: 1.0 App Version: PayOff Pro v1.3+
Last updated