This calculator computes the savings in interest expense from making extra payments. It also shows how much sooner, in number of months, the mortgage loan is paid off. The entire amount of the additional payments is assumed to be applied to the loan principal’s amortization.
Consult your mortgage lender to ensure you don’t face a prepayment penalty for making extra payments and that the amount of the extra payment is applied toward the amortization of the loan balance.
- To access the Early Payoff Calculator, navigate to the Reports page from the navigational menu bar.
- Then, click the Early Payoff link in the Financial Calculators section.
- Fill out the required fields Loan Amount, Fixed Interest Rate and Number of Years.
- Loan Amount – The amount of financing provided by the lender.
- Fixed Interest Rate – The fixed interest rate is a non-variable percentage applied to the outstanding balance of the loan to determine interest payments. The interest is the fee paid to the lender by the borrower for the use of the borrowed money.
- Number of Years – The time frame granted by the lender for the repayment of the loan.
- Number of Months Until Additional Payments – The amount of time between the initial loan and when additional payments are included along with regular payments.
- Monthly Principal & Interest (PI) – The total dollar figure paid each month before additional payments.
- Months until Paid – This is the total number of periods it will take to repay the loan, before additional payments. (Number of Years) x (12 Months)
- Click Calculate to calculate PI or click Amortization Table to calculate PI and amortization of loan.