Payment terms for mortgages are usually the longest of all loans. It makes sense to pay some Extra Principal as often as you can.
Making so can dramatically reduce Total Repayment Time of the Loan and also save you lots of money on Interest.
For this purpose we have created a great Mortgage Calculator in Excel that breaks down Repayment Amount into Principal and Interest. It also allows for Extra Payments in each period.
To download a sample click here: get sample
The sample is limited to 30 payments. Try it first and if it does what you need then you can purchase the full version here: buy full version
The full version of this calculator includes up to 8000 repayments. That should be more than enough for any type of mortgage.
To put things into perspective, 8000 monthly payments will match over 660 years of Loan Time.
Calculator’s Repayment Frequencies
Our Mortgage Calculator works for any usual Repayments Periods – monthly, bi-weekly (fortnightly), weekly and even daily.
Let’s say, you are paying off your Mortgage weekly. In this case 8000 Repayments can accommodate a Loan exceeding total length of 150 years.
Even with daily Repayment Frequency (which is very unusual) this calculator can handle 20 years-long Mortgages. Off course, providing all details for each Payment Period such as Principal and Interest portions as well as showing you the Mortgage Balance.
Not many Calculators on the market offer such versatility and flexibility. To sum it up, for each Payment term you will get following values:
- Principal Amount
- Interest Amount
- Loan Balance
- Additional Principal (sometimes called also Extra Payment)
- Repayment Date
- Length of time in years that passed from Loan Start Date
Extra Feature – Adjustable Payment Date
You can do one more cool thing with our Mortgage Calculator… As it happens to most of us, sometimes we miss the Repayment Due Date.
Reasons can vary. We forget to schedule an Automated Payment, accidentally there is an insufficient balance in the checking account or our Bank screws things up.
The result of the late Payment is that additional Interest or Penalty Fees are applied against your Loan Balance. The original Amortizations Schedule will then get distorted.
And here our Excel Mortgage Calculator can help, too.
Simply overwrite the Payment Date and the Calculator will do the rest – it will automatically calculate the extra Interest and applies it to the Loan Balance. So, the Balance owed on your Mortgage will stay up-to-date at all times.
To make things even easier for you we highlighted all fields that can be adjusted with green color. This way you are sure to be updating only those fields which you are supposed to.
Over-typing some other fields or deleting formulas may break the Calculator. Sticking to the green fields and leaving the other untouched will prevent that.
Mortgage Entry Parameters
All right… So far we discussed the middle part of this Mortgage Calculator, which is the Amortization Schedule. Now let’s go back to the entry point.
Every Loan can be described by basic Loan Parameters which must be specified before the Amortization Schedule can be generated. The Entry Form for these Parameters is located in the upper-left part of the screen.
The Parameters we use are these:
- Loan Amount
- Repayment Frequency
- Interest Compounding Frequency (is usually the same as the Repayment Frequency, but in some cases can vary)
- Desired Repayment Amount
- Interest Rate per Year (or per annum – p.a.)
Please notice that there is one difference to other Mortgage Calculators. Normally they ask you to specify the desired Loan Term.
Our calculator is different again. Instead of the Mortgage Length it will ask you for desired Repayment Amount which you can afford or wish to pay. Then it will figure out the Loan Term – it’s working the opposite way.
The main benefit this approach is that you can say how much you want or can afford to pay. The Excel Calculator will then determine how long it will take to repay the Mortgage using your selected Payment Amount.
You can interactively changing the Payment Amounts and immediately see how that impacts your Total Loan Term.
Off course, you can still pay any Additional Principal in any Repayment Period. Every Extra Principal Payment will decrease the Loan Balance which in effect will shorten the length of your Loan Term.
Ok, so in the upper-left part of the calculator you enter your Basic Loan Parameters. Then in the middle and bottom part you get the Loan Schedule.
Now, finally in the upper-right part you will see the following summary results for your Mortgage:
- Loan Term
- Total Interest Paid
- Total Principal Paid (should equal the original Loan Amount)
And that’s it! We hope that you will enjoy using our great and helpful Mortgage Calculator with Additional Principal. You can find more detailed description on how to use it, including pictures here: User Manual.
If you have any additional questions or suggestions regarding our Excel calculator, please do not hesitate co contact us via the Contact Form (located in the Menu Bar).