Mortgage Loan Payoff Calculator Early

Early Payoff Formula:

\[ n' = \frac{-\log\left(1 - \frac{P \times r}{M + E}\right)}{\log(1 + r)} \]

Loan Principal:

USD

Interest Rate:

decimal

Monthly Payment:

USD

Extra Monthly Payment:

USD

Reduced Payments (months):

Definition: This calculator determines how making extra payments reduces the total number of payments needed to pay off a mortgage.

Purpose: It helps homeowners understand the impact of additional payments on their loan term and interest savings.

The calculator uses the formula:

\[ n' = \frac{-\log\left(1 - \frac{P \times r}{M + E}\right)}{\log(1 + r)} \]

Where:

Explanation: The formula calculates how much faster you'll pay off your loan by making additional principal payments each month.

Details: Understanding early payoff helps borrowers save thousands in interest and become debt-free sooner.

Tips: Enter your loan principal, annual interest rate (converted to decimal), regular monthly payment, and any extra payment you plan to make.

Q1: How do I convert APR to monthly rate?
A: Divide your annual rate by 12 (for monthly payments). Example: 6% APR = 0.06/12 = 0.005 monthly.

Q2: Does this account for changing interest rates?
A: No, this assumes a fixed-rate mortgage with consistent payments.

Q3: How accurate is this calculation?
A: Very accurate for fixed-rate loans, assuming consistent extra payments.

Q4: Should I round up the result?
A: Yes, the calculator automatically rounds up to the next whole month.

Q5: Can I use this for other loans?
A: Yes, it works for any amortizing loan (car loans, personal loans, etc.).