How will my existing mortgage be affected if I make extra mortgage payments to pay down the mortgage?
If you want to pay down a loan ahead of schedule by adding a fixed amount to each payment, this extra payment calculator will show you how much quicker you’ll reach loan pay off time and how much money you’ll save. Almost every other loan pay off calculator out there uses initial loan amount, rate, date and term of loan. They assume you have not made any additional payments to your principal. If you have, your balance will not match and your answer will not be accurate. This one is smart enough to take that into consideration and use only your current balance, loan rate and payment amount. Accurate data to begin with gives an accurate answer. (Thanks user Jeff for noticing and pointing that out!)
A Good ‘Pay Down Loan’ Strategy is to Pay Extra Principal Every Month
One of the most common ways to pay down a loan early is to pay additional principal each month. You don’t have to pay a lot of extra each month to make a significant difference in your loan payoff time. An additional $50, or even $25 extra principal each month may make a surprising difference. You can save a lot of interest if you pay down the loan early.This extra payment calculator is designed to tell you how much interest and time you’ll save if you know how much extra you can pay each month. The Early Loan Payoff Calculator is another loan payoff calculator that will help you figure out how much extra to pay each month to pay down the loan by a desired years or months.
Title: A title for these calculator results that will help you identify it if you have printed out several versions of the calculator.
Lender: The name of your potential lender. This field is not required but may help if you have printed out several loan scenarios.
Loan Balance: The amount you owe on your mortgage or loan.
Interest Rate: The annual percentage rate you are paying for this loan.
Monthly Payment: The principal and interest portion of each monthly payment. This may not be the amount you write a check for each month. Depending on the type of loan, your actual payment may include other amounts for escrow, private mortgage insurance (PMI), fees, or property taxes.
Additional Principal: The additional amount you will pay each month (over the required ‘Monthly Payment’ amount) to pay down the principal on your loan.
New Monthly Payment: The required ‘Monthly Payment’ plus any ‘Additional Principal’ you want to pay each month. The ‘Early Payoff’ calculations assume you will pay this amount of principal and interest each month from now on until the loan or morgage is paid. Actual payment could include other amounts such as escrow for insurance and property taxes, private mortgage insurance (PMI), fees, and dues.
Early Payoff (column): If you pay additional principal each month your loan or mortgage will be paid earlier than scheduled and you will pay less in interest charges.
Without Early Payoff (column): The payoff time and interest charges if you pay no additional principal each month.
Savings (column): ‘Early Payoff’ compared to ‘Without Early Payoff’ saves you this much time and money.
Payoff Time: Amount of time until the loan is paid off.
Total Interest: The remaining total amount of interest you will pay over ‘Payoff Time’.
Total Paid: The remaining total amount of principal + interest you will pay over ‘Payoff Time’.
Remaining Payments: The number of payments you will make to pay off the loan.
Annual Cost: The amount of money you will pay each year for this loan.