Get the Right Home Loan in Perth: Expert Advice for Busy Families
Extra Repayment Calculator
Defining the Term: The Power of Additional Contributions
“This calculator helps you estimate how much time and interest you can save over the life of your loan if you make regular additional repayments into your loan.”
An extra repayment calculator is a tool that helps people see how much of a difference it can make to pay more than the minimum payment on a home loan. It shows how paying an extra each month or even just making a big payment every now and then can really reduce the total interest paid and shorten the life of the mortgage. To use the calculator, you just need to put in the loan balance, interest rate and how much extra you want to pay. The calculator then shows how this extra money can help reduce the debt.
The best thing about this tool is that it shows how powerful it can be to pay off debt. Because interest is calculated every day, paying money early on can save a lot of money in the long run. The calculator can also help people see which payment plan works best for them like paying extra every week or every two weeks. This helps people make a plan to pay off their mortgage faster which can save them a lot of money.
An extra repayment calculator is a motivator for people to take control of their finances. It shows that even small changes to a budget can add up to big savings over time. By using the calculator people can see how much they can save and how many years they can cut off their mortgage. This helps people make a plan to pay off their debt and build equity in their home faster. The extra repayment calculator is a tool that can help people achieve their financial goals and become debt free sooner.
Assumptions:
It does not take into account any possible fees i.e. up-front fees or ongoing fees.
Interest rate does not change over the loan term.
Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, interest compounding frequency may not be the same as repayment frequency.
It is assumed that a year consists 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
No rounding is done throughout calculation whereas repayments are rounded to at least the nearer cent in practice.
The final repayment after the increase in repayment amount will be a partial repayment as required to reduce the loan balance to zero without negative owing amount.
How to Use This Tool
To use Extra Repayment Calculator, type on the following fields: Enter your details: Loan Amount (eg. $400,000), Interest Rate (eg. 5.50%), Loan Term (eg. 30 years) and Repayment Frequency (choose Monthly, Fortnighly & Weekly); and lastly enter you Offset Account Balance (eg. $50,000).
Once all the details are entered, you can view your results: Monthly Repayment, Interest Saved and also displays Time saved in years and months along with Revised time in years and months. Also can view a Graphic via Loan Balance Chart: shows Loan Balance, Total Payment via Amount Owing and the Years.
Lastly, with the results shown you can print your results.
