Mortgage Repayment Calculator
Calculator Use
Use this calculator to calculate repayment of your mortgage and add extra payments to find how much it reduces the length of your loan term and the amount of interest you can save over the life of the mortgage. Works in reverse also. (negative extra payments to pay less) Create an amortization schedule.
To also run scenarios for new payments by changing the loan term try Loan Repayment Calculator.
- Current Mortgage Balance
- the outstanding principal when calculating a current mortgage or the original amount on a new loan
- Interest Rate
- the annual nominal interest rate or stated rate on the loan. Note that this is the interest rate you are being charged which is different and normally lower than the Annual Percentage Rate (APR).
- Current Monthly Mortgage Payment
- the amount currently to be paid on this mortgage on a monthly basis toward principal and interest only. DO NOT include insurance or taxes or escrow payments; these are not applied to your loan. This value is not always easy to find but usually you can look at your last statement to find the amounts applied to principal and interest and add these 2 numbers together. (payment = principal + interest)
- Monthly Extra
- the extra amount you plan to add to your monthly payments on this mortgage. This will be paid against the principal.
This calculator will provide good results but you may want to also talk to your loan provider to get a calculation from them.
Term (months) Calculation
When investigating different payment amounts you can use the following formula to calculate what your coresponding number of months on the loan will be:
where n = number of months, PMT = monthly payment, i = monthly interest rate as a decimal (annual rate divided by 100 divided by 12), and PV = mortgage balance (present value).