Author Topic: Amortization schedule calculator  (Read 2265 times)

jda85

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Amortization schedule calculator
« on: September 04, 2016, 05:41:53 AM »
I didn't really know where this belonged on the forum, this area seemed as good as any.

I wrote a program to calculate amortization schedules for loans (yet another). However, extra focus is given to interest saved by making extra principal payments. Interest saved is calculated per each extra principal payment, showing how extra payments early in the payment stream can save big bucks over the lifetime of the loan.

https://www.allensw.com/loancalc/

greengardens

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Re: Amortization schedule calculator
« Reply #1 on: September 04, 2016, 09:50:51 AM »
Thanks! I always knew that putting extra money towards student loans saved me money but now I can put an actual figure to it! Making me feel really good this morning.

sisca

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Re: Amortization schedule calculator
« Reply #2 on: September 07, 2016, 02:15:43 AM »
Cool calculator! But I am having problems understanding some of it. Lets assume I have a 3 mill loan (I don't use US $), and pay 13 000 a month. The interest rate is 3 %.

If I make extra payments of 3000 a month, I save over 4000 a month in interest? What is it that I don't understand here?

jda85

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Re: Amortization schedule calculator
« Reply #3 on: September 07, 2016, 04:55:56 AM »
The interest saved column is the total amount saved over the lifetime of the loan, not a recurring monthly savings.

Using your example, a 3000 extra principal payment at month 1 saves you a total of 4080.74. However, a 3000 payment at month #243 saves you a total of $98.96.
If those were the only two extra payments made, you would have saved 4179.70 upon completion of repayment.

Does that explanation help? Is there a way to explain or represent it more clearly?

sisca

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Re: Amortization schedule calculator
« Reply #4 on: September 08, 2016, 12:10:39 AM »
Thanks, that helps a lot!

JustGettingStarted1980

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Re: Amortization schedule calculator
« Reply #5 on: September 08, 2016, 08:07:13 AM »
1. Open a new sheet in Excel
2. Press the "sheet1" tab on the bottom with a right-click
3. "Insert" --> "Spreadsheet solutions" --> "Loan Amortization"

Hope this helps!

JGS