How to Calculate Early Loan Payoff
- 1). Gather loan information. To use a loan term calculator, you need to know the current principal balance of the loan and the annual interest rate. If you base the early payoff on an increased monthly payment, you need to know the maximum monthly payment you can afford.
- 2). Find a loan term calculator. If you prefer a calculator specific to the loan type, such as auto or mortgage, first check your bank's website. Some banks have separate calculators for auto, mortgage, student and personal loans. For an expanded list of calculators, see the Resources section.
- 3). Enter information. Once you decide on a calculator, start plugging in numbers. You can discover how much you can save by entering different monthly payments and loan terms. Most calculators have an option to print a payment, or amortization schedule, so check this box and print the schedule before exiting the application.
