What to include in a payoff statement
Identify the lender and borrower, loan reference, payoff good-through date, principal amount, accrued interest, per-diem interest after that date, fees, credits, and final estimated payoff total. Include remittance instructions only if they have been verified by the lender.
Calculate accrued interest and per diem
For simple daily interest with Actual/365: Daily interest = principal × annual rate ÷ 365. Multiply by the applicable elapsed interest days. If a loan's principal is $14,500 at 8%, 12 days of interest is $38.14, making a $14,538.14 estimated payoff before any fees or credits. The per diem is approximately $3.18; don't substitute rounded per diem for the precise multi-day calculation if the agreement requires cent-accurate totals.
| Statement item | Example amount |
|---|---|
| Outstanding principal | $14,500.00 |
| Accrued interest (12 days) | $38.14 |
| Fees / credits | $0.00 |
| Estimated payoff | $14,538.14 |
Prepare the document
Use the free Payoff Statement Builder and Daily Interest Calculator. If you need to save borrower details, reopen worksheets later, and print a professional payoff PDF frequently, compare Daily Interest & Payoff Calculator Pro for Windows.
Important payoff details
Always verify the contract's interest basis, whether the payoff-through date is included, late charges, unapplied funds, escrow balances, lien release procedures, and whether a lender-issued statement is required. This free guide is an illustrative worksheet, not a binding lender quote.
Repeatable Windows software
Evaluate programs designed to save and document recurring work.
Browse Windows software →Updated October 24, 2026