Calculator with Multiple Extra Payments

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The accelerated payment calculator will calculate the effect of making extra principal payments. A very small extra principal payment made along with a regular payment can save the borrower a large amount of interest over the life of a loan, particularly, if those payments are started when the loan is relatively new.

For example, assume that you have taken out a loan for $130,000, for 360 monthly periods with an annual interest rate of 7 3/4%. If, with the 49th payment, you start to pay an extra $225, you will save $75,901.42 in interest payments and the loan will be paid off in 234 payments instead of the original 360 payments.

It is very easy to quickly calculate many different scenarios. Note that the higher the interest rate, the greater the savings for any extra payment amount. Also, for a normal amortizing loan, the interest savings will be greater the sooner the extra payments start. That is, you will save a lot more in interest if you pay an extra $50 a month for the last 20 years than if you pay an extra $100 a month for the last 10 years.

As with many of our other calculators, this calculator will also solve for an unknown input. For example, if you want the calculator to calculate the regular monthly payment, enter '0' (zero) for the "Periodic Payment" and a non-zero values for "Amount of Loan", "Total Months", and "Annual Interest Rate".

If you do not enter a '0' value, the calculator will use your inputs. This allows you to use any payment amount that you need.

Hello, could you direct me to the correct calculator? I have an existing home loan with principal balance. I would like to enter my current balance, interest and how much extra I need to put to principal to pay off in 5 years.

You can use the Amortization Schedule for this calculation. You’ll enter the loan balance in "Loan Amount" and if you are paying monthly, enter 60 for the "Number of Periods" and 0 (unknown) for the payment amount. This will solve for the amount you have to pay in order to pay off the balance in 5 years. The difference between the calculated amount and your current payment, of course, is the extra payment you’ll need to pay.

Hope this help.

Awesome, exactly what I needed.

Hello,

How can I calculate a mortgage prepayment schedule and interest savings amount if I want to pay an extra lump sum once per year in January, vs a regular monthly extra amt?

You can do that easily with the Ultimate Financial Calculator on this site.

On that page, scroll down and you’ll see links to a set of tutorials. Everyone should read tut. #1 to get an overview of how this calculator works.

Then tutorial #9 will give you an example for what you want:

Hope this helps.

You might want to make a monthly or better principal curtailment……

Why???? The(YOUR!) interest is calculated on the outstanding principal balance…..BIGGER savings for YOU!!!! I hope that helps!!!

Hi, this calculator worked great to give me an amortization based on our additional payment per month. I tried several other sites but nothing gave me the schedule.

One request is to be able to set the start date of the loan. I’m using this for an existing mortgage that we’ve been making extra payments on since day 1, and I wanted to figure out the end date. Because this assumes the loan starts this month, I have to adjust the dates accordingly, subtracting the current date from the date that I started the loan, when looking at the schedule.

As you discovered, this calculator is for quick "what-if" calculations. It is not intended to be used as an auditing tool.

But, the Ultimate Financial Calculator lets you set the dates. In fact, it also allows you to make individual extra payments on any date or a series of extra payments. It’s very flexible.

If you try it out, scroll down the page and there are 25 tutorials with two specifically dedicated to extra payments.

Naturally, if you have a question, you can ask it in the comment section at the bottom of the calculator’s page.

Love this calculator but would like to be able to tell it loan start date and didn’t see that option.

You are right. This calculator does not allow that. It’s for quick what-if calculations.

But all is not lost. 🙂

You may try this calculator for extra payments that start on any date.

When you get to the Ultimate Financial Calculator page, scroll down, and you’ll see a number of tutorials. Look at #1 and then there are two, as I recall, that deal specifically with extra payments.

If you have any questions you may ask on that calculator’s page.

The calculator I just recommended also lets you start the loan on any date. (I read your question too quickly.)

I have found your calculators to be the best , but I do have some question re: the extra payment calculator: i enter my rate and the extra amount that I put toward my mortgage each mint,h but it does not deduct the total amount, so obviously I am doing something incorrectly.Can yiou guide me though this process?

Hi Pat, thanks for the compliment!

Unfortunately, I can’t duplicate the problem you are seeing so this makes it difficult to offer any guidance. Maybe I’m not understanding the problem?

If I enter $1,000 into "Extra Amount Paid?" and click the "payment schedule" button, on the rows marked "XPmt", the balance is $1,000 lower than the prior row’s balance. Is that not what you are seeing? If not, can you please tell me what inputs you are using?

FYI: For calculating the impact of extra payments, you may also find this finance calculator useful. It allows the user to enter random extra payment amounts on any date. It also supports a regular series just as this calculator does. If you make an extra payment when a regular payment is not due, the amortization schedule expands and goes into more detail.

If you try it, scroll down the page and see tutorials #9 and #10. They both deal specifically with extra payments.

Hi Karl

This is a fantastic calculator. I have now bookmarked it to show people how much they can save with even the smallest additional payments. (I am in the training field, so sometimes we talk about this subject with trainees, and I haven’t been able to show exactly as I am no accountant).

I have used it for my own purposes on a property I own, and want to kick my own butt for not having started sooner.

Thanks for this!

You’re very welcome Warren. And don’t kick yourself too hard, perhaps the money you would have used for extra payments earlier earned a higher rate of return at the time than the interest you were being charged on the loan.

One other thing, in the past few weeks, I’ve added the ability to include extra payments when using these specialty calculators:

The car loan calculator might be of interest to your students because it calculates a

total cost of ownershipwhich considers sales tax, insurance, maintenance and other variables.The mortgage calculator calculates income taxes saved as the result of deductions that most people in the US can make. It also calculates final value on the home, assuming some appreciation rate at the end of the mortgage. It’s interesting to compare the final value with the total principal and interest paid.

Thought you might be interested.

Mr. Karl,

Can we calculate the amortization schedule for "reducing balance/principal" interest calculation with this? ( is the interest calculated with NORMAL calculation method means reducing balance interest calculation? if not which mode I should select for this)

Can you guide me on this?

Hi Balaji, I’m not familiar with the term "reducing balance/principal." Can you explain it? Perhaps with an example?

The "normal method" calculates the interest on the balance and adds it to the principal and then the payment is deducted.

Hi, Looks like the normal method is what I was describing as reducing balance/principal. thanks. I was struggling to calculate the interest as I was making a couple of random prepayments to my loan.

Further There was a prepayment charge of 1% to every prepayment, any guidance on where to load them?

Thanks

I would suggest you use this financial calculator.

Scroll down the page and see the two tutorials about extra payments – tutorials #9 and #10. (Everyone should also read #1 for an overview.)

For the prepayment fee, you can calculate the 1% and add it back as an additional loan amount. (The construction loan tutorial explains how to have multiple loan amounts with this calculator.)

If you have questions about any of this, feel free to ask them on that calculator’s page.

I am trying to figure out a program for a home loan with fixed interest rate but ability to make periodic payment on principal.

You may want to try two other calculators as well.

The mortgage loan calculator allows for extra payments too, but it also provides a lot of other details specfic to a mortgage – such as the potential income tax savings due to the interest and property tax deduction.

Also, this finance calculator allows for random extra payments or a series of extra payments with regular or varying amounts.

I would be interested in a calculator that allows me to enter two items with payment information so that I could see try different scenarios to identify the best way to allocate extra funds so I could make extra payments that would pay off both loans quickly, and save the most money. (i.e. is it best to pay this one off first or that one – with extra payment options), and once paid off, if the amount that was allocated toward the now paid off account was added to the remaining account, when would it be paid off?, etc.)

Please stay tuned – I hope to have just such a calculator ready for release before year-end.