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How many months till payoff - Monthly extra payment

Last modified by
on
Jul 24, 2020, 6:28:07 PM
Created by
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Dec 28, 2013, 12:52:39 AM
num months=Period[Loan(P,i%,n)]-Period[Loan(P,i%,n,"extra paymnt")]
Original Loan Amount (P)
Loan term (n years)
Interest Rate (i%)
Extra payment amount each month
Tags
Mortgages and Loans Mortgages payoff What-if Scenarios  
UUID
59ce0c40-6f5a-11e3-84d9-bc764e202424

This equation amortizes a loan over an input term and then calculate the number of months to pay off the loan when an extra amount is applied to the monthly payment.

The equation will return the number of months left to pay on loan if an extra monthly payment is made in each payment period.

NOTES

If the extra payment each month is left blank,  the number of months to payoff is equal to the term.

This equation is used to answer questions of the form:  What happens if I add an extra $10 to my monthly mortgage payment? How many months will it be until I pay off the loan ?

EXAMPLES

As an example, a typical 30 year loan at 6% interest for $50,000 will have a monthly payment of $299.78.

If you make an additional $10 payment each month, the same loan will only require 330 payments to pay off the loan.  

The loan can be paid off in two years and six months earlier by paying an additional 10 dollar a month.
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