With Payment Schedule

Original Size

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.

Hi,

I find your extra payment calculator very helpful, but would like two changes:

1. Allow the extra payment amount to begin on the very first payment (chart shows it starting on second payment whether I enter 1 or 0 in the set up)

2. Allow entry of date of first payment.

Thanks again!

Glad to hear that you find this calculator useful and thank you for taking the time to comment.

As to point #1, that’s a bug. I’ll have to get it fixed. And as to point #2, this calculator is not a auditor’s tool. The intent is to give users a quick way to calculate the impact of making extra payments on a loan. Requiring users to enter a date slows things down and it further increases the size of the calculator which makes it less useful on small devices.

But, we do have a tool that will allow you to do what you want (and will work around the bug too). Please see:

Time Value of Money Calculators

and these 2 tutorials:

Random Extra Principal Payment

Series of Extra Principal Payments

The TVM Calculator is our most flexible financial calculator and I think, well worth spending some time with.

Jim, item #1 has now been fixed. If you enters 0, for "Increase Starts at Month? (#):", the extra payment starts on the loan date. Of course if you enter 1, then the extra payment starts with the first payment.

Did you by any chance try the TVM calculator? If so, how did that work for you?

How do I calculate the impact of dividing my mortgage into weekly payments, rather than a monthly payment?

You can use the amortization schedule calculator. It allow you to set weekly payments with any payment amount you like.

thoughts:

1. I’d like to be able to see total interest (rather than just interest saved) in the first set of numbers after calculation. After all that is what you want to know — how much it costs rather than just how much you save. You do see this in the second page after you look at the chart, but you can’t print the first set of conclusions with the actual amount of total interest you pay as it stands.

2. I’d like to be able to set the start date of the loan myself. Your chart just chooses it.

3. I’d like to be able to print the conclusions of the chart (the summary) rather than the whole chart with all its numbers.

4. I’d like to be able to add in a big payment to the principal, let’s say one year after I begin the loan. So “What if I was able not only to make extra payments but also a lump payment 12 months into an 84 month loan?”

Thank you for the charts and the ability to make comments. Both appreciated.

Thank you for your “thoughts”. These are constructive ideas and in fact they are so good that is why you’ll find many of them implemented in another calculator! ðŸ™‚

Please see the Time Value of Money Calculator.

Scroll down the page and checkout these tutorials:

9. Random Extra Principal Payment

How to prepay principal on any date

10. Loan with Series of Extra Principal Payments

How to calculate loan or mortgage with extra payments

The calculator supports both within the same schedule.

You’ll also be able to set the dates (for each payment if you wish).

About the printing of the summary, I’ve got a list of changes for this site already. Once those are completed, I’ll look at making the changes to the summary that you’ve suggested.