Accurate Loan Payoff Calculator™

Borrow or pay any amount, on any date, at any rate.
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What is a loan payoff amount?

Loan Payoff Calculator
Loan Payoff Calculator

Payoff Calculator tracks payment amounts on the date paid. Calculate penny-perfect loan balance.

  • Allows for missed payments
  • Allows for extra payments
  • Allows for interest rate changes
  • Add fees or charges if needed.
  • Export schedule to Excel/XLSX and Word/DOCX files

A perfect calculator for seller financing transactions.

The loan payoff amount is the unpaid principal balance plus all unpaid, accrued interest as of a specified date. The borrower must pay the payoff amount on the date decided in order to close the loan.

What is a loan payoff calculator?

A loan payoff calculator can track individual payments as of their actual date, including extra and under-payments, to calculate the current loan balance or payoff amount.

What is seller financing?

Seller financing, also known as owner financing, is when the seller of the asset (frequently a home) offers to finance the loan. Owner financing allows the buyer to borrow the funds, minus a down payment, directly from the seller.

What is an owner financing calculator?

The owner or buyer can calculate the current loan balance using an owner financing calculator to track individual payments on the actual date paid, including extra and underpayments.

The Accurate Loan Payoff Calculator makes the task of tracking an owner financing deal or calculating a payoff amount easy. Just watch the videos or follow the tutorial below to get started.

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Recent changes and enhancements

  • Jan. 10, 2024: Changed the default long and short-period interest options under "Settings." This means you will not get the same results you previously hadunless you reselect your preferred setting.
  • 2023: Save any schedule's data to Word/docx orExcel/xlsx files. Click on "Schedule" then "Continue" past the title page.
  • The calculator automatically sorts the cash flow prior to file save and calculation. This fixes the issue where the "Unknown" did not calculate due to overlapping dates in different cash flow series unless the user had clicked the "Expand" button.

Calculating a loan payoff amount is easy with this calculator. The calculator considers all on time late, missed and extra payments. It can also accommodate payment and interest rate changes.

  • The Accurate Loan Payoff Calculator will do the job if you are searching for any of these calculators:
    • loan repayment calculator
    • mortgage payoff calculator
    • student loan repayment calculator
    • home loan repayment calculator
    • car loan repayment calculator
    • debt payoff calculator
    • debt repayment calculator
    • or any early loan payoff calculator

All users should work through the more detailed first tutorial to understand the this calculator's basic concepts and settings.

Seller or Owner Financing - A Step-by-Step Tutorial
Tutorial 25

How to get an accurate balance or payoff amount.

To calculate a mortgage or loan balance and record payments as they are made, follow these steps:

Loan payoff check
Fig. 1 - From "Settings" click on "Rounding Options" Select "Open balance."
  1. Set "Schedule Type" to "Loan"
    • Or click the [Clear] button to clear any previous entries.
  2. Set "Rounding" to "Open balance — no adjustment" by clicking on {Settings} {Rounding Options}
    • This setting is what allows you to enter single payments. Fig. 1
    • Any other setting forces the calculator to adjust the final payment so the balance is zero
  3. Set the "Days Per Year" option to "360 Days Per Year" by clicking on the {Setting} {360 / 365 Days}
  4. In the header section, make the following settings:
    1. For "Calculate Method" select "Normal".
    2. Set "Initial Compounding" to "Monthly".
    3. Enter 5.25 for the "Initial Interest Rate".
  1. In row one of the cash flow input area, create a "Loan" series
    1. Set the "Date" to February 16
    2. Set the "Amount" to 5,250.00
    3. Set the "# Periods" to 1
      • Note: Since the number of periods is 1, you will not be able to set a frequency. If a frequency is set, it will be cleared when you leave the row
  • Frequently, the next step is to calculate the regular, periodic payment amount if you don't already know it. For this example, we'll assume that the payment has not yet been determined. If the payment has been agreed to, you can skip to step #8.
  • The borrower has agreed to pay the loan back in 24 equal payments due at monthly intervals. What is the payment amount?
  1. Enter known payment details in second row
    1. Set the series to "Payment"
    2. Leave the "Date" set to March 16
    3. In the "Amount" column type "U" for "Unknown" Fig. 2
    4. Set the number of periods to 24
    5. Set Frequency to "Monthly". (The "End Date" will be February 16.)
  • Your screen will now look like this:
Calculate the unknown periodic payment
Fig. 2 - Calculating the periodic payment
  1. Click the "Calculate" button
    • The expected, periodic payment is $230.91 Fig. 3
Calculated periodic payment
Fig. 3 - Expected periodic payment
  • Now we can start recording payments as they are received. Because we calculated the payment amount assuming 24 payments, we need to edit row #2:
  1. The 1st payment is received on time. Click on row #2
    1. Select "Payment" for the series
    2. Leave the date set to March 16
    3. In the "Amount" column enter $230.91
    4. Enter "1" for "# Periods" (recording 1 payment)
  • Assume the next 3 payments are also received on the due date and for the amount due but you fell behind in recording them in the calculator. It is easy to catch up:
  1. Click on row 3
    1. Select "Payment" for the series
    2. Set the date to the April 16
    3. In the "Amount" column enter $230.91
    4. Enter a "3" under "# Periods"
  • Your screen should now look like this Fig. 4:
Three scheduled payments
Fig. 4 - Three on time payments.
  • So far, all payments have been received for the amount due and on the due date. Let's check out the loan payoff amount after these 4 payments are made:
  1. Click on the "[Schedule]" button
    1. As of June 16, after the payment, the payoff amount is $4,412.77 Fig. 5
Loan payoff check
Fig. 5 - Payoff amount after four payments.
  • The borrower is reliable and not only does he pay the 5th payment early, he also pays an extra $100.
  1. Normal payment plus an extra payment. To record this:
    1. Click on the fourth row. Set the series to "Payment"
    2. Set the date to "July 10"
    3. Set the "Amount" to $330.91. (Includes the extra $100.00.)
    4. Set the "# Periods" to 1
  • So much for the debtor being reliable.
  1. Missed payment followed by under payment:
    1. Click on the fifth row. Set series to "Payment"
    2. Set the date to "September 16"
    3. Set the "Amount" to "$180.91"
    4. Set the "# Periods" to 1
  • After making 4 regular payments, as well as one early payment with an extra $100.00 and making a payment that is short by $50.00, your cash flow data screen will look like this Fig. 6:
Five payments
Fig. 6 - An extra payment and a short payment.
  • Note: It is not necessary to enter a '0.00' for the missed payment. But it can be done as a matter of record keeping. Doing so, explicitly acknowledges that a payment was missed and it also forces the balance to be calculated on the payment schedule as of the date of the missed payment.
  • Note: Interest is being calculated through August 16 and it is being added to the balance.
  • Your borrower is in need of additional cash. You agree to lend it to them and add it to the loan balance.
  1. Add an additional loan
    1. Click on the empty row after the last payment. This will be row six
    2. Select "Loan" for the series Fig. 7
    3. You will make the funds available on October 1st. Enter October 1 in the Date column
    4. In the "Amount" column enter the new loan amount $1,000.00
    5. You are making one loan. Enter a "1" for "# Periods"
  • Since there is a new loan amount, you want to calculate a new payment amount. Also, the borrower has agreed to pay the loan off in 18 more payments.
  1. Adjust payment due to new borrow
    1. Click on the empty row after loan just entered
    2. Select "Payment" for the Series
    3. The payments will continue to be due on the 16th of each month. Set the "Date" set to "October 16"
    4. In the "Amount" column type "U" for "Unknown".
    5. Set the "# Periods" to 18
    6. Set "Frequency" to "Monthly"
  • Before clicking "Calculate", your screen will look like this if you've been following along:
New loan and payment adjustment
Fig. 7 - Additional loan and payment adjustment.
  1. Click "[Calculate]"
    • The new payment will be $286.78 Fig. 8
Payment adjustment
Fig. 8 - Payment adjustment result.
  1. Next, borrower pays the full payment amount, however he does pay two days late:
    • Edit the payment in row 7.
    1. Leave "Series" set to "Payment
    2. Change the "Date" to "October 18"
    3. Since the full payment is paid, leave the amount as it is, $286.78
    4. Only one payment is being made. Change the "18" to "1" in the "# Periods" column
Resume payments
Fig. 9 - Resume entering payments
  • Continue to enter payments (and loan advances) as they are received until the loan is paid off. Remember, you may enter "0.00" payment amounts on any date to calculate the payoff as of the date entered. Fig 9
  1. Next, borrower pays the full payment amount, however he does pay two days late:
    • Edit the payment in row 7.
    1. Leave "Series" set to "Payment
    2. Change the "Date" to "October 18"
    3. Since the full payment is paid, leave the amount as it is, $286.78
    4. Only one payment is being made. Change the "18" to "1" in the "# Periods" column
Resume payments
Fig. 10 - To get the balance as of Jan. 1, enter $0.00 for the amount.
  1. Calculate the unpaid principal balance as of any date:
    • Assuming no payments are made after Oct. 18:
    1. Leave "Series" set to "Payment
    2. Change the "Date" to "January 1"
    3. Since we want the loan balance on a day when no payment is paid set the amount to$0.00 Fig. 10
    4. Click on [Schedule], the row for January 1 will show the loan balance, including the interest accrued since the Oct. 18th payment. Fig. 11
  2. Calculate the loan's payoff amount as of any date:
    • Follow the steps in 17, but set the Jan. 1 amount to "Unknown".
    • Change the rounding option to "Adjust last amount to reach a "0" balance"
    • The calculator will calculate the payoff amount and the schedule will show a $0.00 balance.
    • Of course the payoff amount will equal the loan balance (within the rounding adjustment) from 17 above.
Resume payments
Fig. 11 - Payoff schedule showing accrued interest and balance as of Jan. 1.
  • As you can see, you have two ways for looking at the same loan.
    • Follow the steps in 17 and the schedule shows the balance as of Jan. 1.
    • Follow the steps in 18 and the calculator calculates the pay off amount and the schedule shows a 0 balance.

If you have any questions about the Accurate Loan Payoff Calculator, feel free to leave them in the comment section below.

TValue is a trademmark of TimeValue Software.

80 Comments on “Loan Payoff Calculator”

Join the conversation. Tell me what you think.
  • Riley Shannon says:

    We have an AM schedule where extra payments are made throughout. Is it possible to allocate an extra payment between interest and principal? Periodically, we want to allocate a specific dollar amount of the extra payment to the accrued interest balance. For example: We have a $4.7M payment; can we allocate $3.9M to principal and $800K to interest? Thanks in advance!

    • The answer is, "it depends."

      If the accrued interest exceeds $800k, then the answer is "Yes," otherwise it is "No."

      What you will need to do is is to allocate the $4.7 million across two payments (rows in the calculator) made on the same date.

      The first of the two rows should be a "normal" payment, for $800k. Since the normal payment gets allocated to interest and then to principal, this row will cover the $800k you want to allocate to interest.

      The second row will be an "XPmt" for $3.9M. This will be allocated to principal only.

      Let me know please if this helps.

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