formula for early loan payoff

  • Thread starter Thread starter Matt C.
  • Start date Start date
M

Matt C.

I have been able to use formulas for mortgage payments and
amortization. But I can't find one that will incorporate
an early payoff on a loan. And I don't know how to
manually calculate either. Example would be I have a loan
at 8% interest for a term of 30 yrs (360 payments) and the
amount is 100,000.00 , it's easy to calulate all the
regular numbers, but if I wanted to pay an extra 100.00
dollars every month on principle to pay off the loan
faster, I can't find a formula that will calculate it. If
you know of a formula or know how to manually get around
this please let me know. Thanks for your time.
 
The function you want is NPER. It will calculate the number of periods given
PV, Rate and Pmt. So your formulas are:

a1 =PMT(8%/12, 30*12, 100000)
a2 = NPER(8%/12, a1-100, 100000)
 
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