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Benefits of Extra Mortgage Payments

Last modified by
on
Feb 3, 2021, 4:05:39 PM
Created by
on
Dec 7, 2013, 5:12:31 AM
Benefits=Loan[50000,6,5,0]
Original loan amount
Interest Rate (%)
Length in years
Extra payment amount each month
Share Result
Time Saved:
Time to Payoff:
Total interest paid:
Total Amount Paid:

The Benefits of Extra Mortgage Payments equation will amortize the loan input and calculate several data points to help you determine how much you can save.  It will consider any additional extra monthly payment applied. 

Returned results include:
*Months Saved on a Loan: This is how much time you will cut off of your mortgage by paying a set amount extra each month.
*Time to Payoff: Total time to completely pay off mortgage.
*Total Interest Paid
*Total Paid on Loan

INPUTS

P - the original loan amount

i - the interest rate input as a percentage; i.e., enter 4.6 for a 4.6% interest rate

n - length of the loan in years

extra_pay - extra monthly payment amount

NOTES

The equation can return the number of Months Saved on a Loan if the monthly extra payment is maintained. This equation can also calculate values such as Total Interest Paid,   Total Paid on Loan.

If the extra payment each month is left blank,  this equation computes this data for a standard number of months to payoff,  and number of months saved will be zero.

EXAMPLES

This equation allows for evaluating different loan scenarios. You can ask/answer questions such as:
"How many months do I reduce my loan if I pay an extra $50 a  month on the principal"

or
"How many total interest dollars will I save if I pay an extra $50 a  month on the principal"
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