Loan Acceleration
Loan Acceleration Comparison
This online calculator is meant to compare a normal loan payment schedule versus an accelerated loan payment schedule.
Instructions
 Enter information into the greenshaded section below (item 1, 2, 3, and 4).
 In item 4, the accelerated payment must be greater than the normal payment.
 Click the Compare button
 You may view the intermediate results (no shading) or you may ignore them
 The end results are in the yellowshaded section (item 8)
 For complete monthbymonth details, click the “Show Amortization” button that will appear after item 8 once the comparison has been run.
Normal Schedule  Accelerated Schedule  

Payment  Remaining  Payment  Remaining  
Month  Principal  Interest  Principal  Principal  Interest  Principal 
Explanations for Each Step

How much one had to borrow
This is the original loan amount.

How many months the loan is supposed to last
The is the length of the original loan.

During which month the accelerated payment will start
This is to specify when the larger payment will take effect.
If the loan has just started and a payment has not yet been made, then month 1 would be entered.
If, for example, the loan has already been active for one year, then 12 months have passed and the next payment would be 13, so 13 would be entered. 
How much one will pay each month
This is the amount from the loan terms – the minimum amount that one must pay each month.
The first category is the standard payment, as setup in the loan agreement.
The second category is the larger payment, to be used to pay off the loan faster. This is the full payment amount, not just the extra amount (difference from the regular payment). 
How much interest one will pay, total
This is the result of the loan terms – how much interest, in dollars, the loan will collect.
The first category is the interest amount from the normal payment schedule.
The second category is is the interest amount from the accelerated payment schedule. 
How much money one will pay, total
This is the result of the loan terms – how much, in dollars, the loan will collect. This is the sum of the loan principal (item 1) and the interest (item 5).
The first category is the total amount from the normal payment schedule.
The second category is is the total amount from the accelerated payment schedule. 
What the interest rate is for the loan
This is the interest rate for the normal payment schedule, as determined by the loan principal, monthly payment amount, and number of payments.
The first line is the interest rate from the normal payment schedule in the form of APR.
The second line is is the interest rate from the normal payment schedule in the form of APY. 
How many months the loan will actually last
The is the length of the loan.
The first category is how long the loan will last under the original loan agreement. This should match item 2.
The second category is how long the loan will last by paying extra each month. This should be a smaller number, meaning the loan will be payed off sooner.
April 7th, 2008 at 9:33 pm
[…] see the effects of paying more than the minimum amount each month, try the loan acceleration calculator, which I added to this site this past […]