Accurate Loan Payoff Calculator™

This calculator makes it easy to calculate a loan payoff amount. It supports on-time, late, missed, and extra payments. It also supports changes to payment amounts and interest rates.

• The Accurate Loan Payoff Calculator is designed for users who need any of the following tools:
  • loan repayment calculator
  • mortgage payoff calculator
  • student loan repayment calculator
  • home loan repayment calculator
  • car loan repayment calculator
  • debt payoff calculator
  • debt repayment calculator
  • early loan payoff calculator

We recommend that all users complete the more detailed first tutorial to understand the calculator’s key concepts and settings.

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

1. Set "Schedule Type" to "Loan".
   • Or click the Clear button to remove any previous entries.
2. Click Settings > Rounding Options.
   1. Set "Rounding" to Open balance — no adjustment.
      • This setting allows you to enter individual payments. See Fig. 1.
      • Other rounding options will automatically adjust the final payment to bring the loan balance to zero.
3. Click Settings > 360 / 365 Days.
   1. Set the "Days Per Year" option to "360 Days Per Year".
4. In the header section, apply the following settings:
   1. For "Calculate Method", select "Normal".
   2. Set "Initial Compounding" to "Monthly".
   3. Enter 5.25 for the "Initial Interest Rate".
5. 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: When the number of periods is 1, the calculator will not allow you to set a frequency. If a frequency is entered, it will be cleared when you leave the row.

• Often, the next step is to calculate the regular periodic payment, if it has not already been determined. In this example, assume the payment amount is not yet known. If the payment has already been set, skip to step #8.

• The borrower agrees to repay the loan in 24 equal monthly payments. What is the required payment amount?

6. In the second row, enter the known payment details:
   1. Set the series to "Payment".
   2. Leave the "Date" as March 16.
   3. In the "Amount" column, type U (for "Unknown"). See Fig. 2.
   4. Set the number of periods to 24.
   5. Set the frequency to "Monthly". (The "End Date" will automatically be February 16.)

• Your screen should now look like this:

7. Click the Calculate button.
   • The expected periodic payment is $230.91. See Fig. 3.

• You may now begin recording payments as they are received. Because the payment amount was calculated using a 24‑payment schedule, update row #2:

8. The first 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" to record one payment.

• Assume the next three payments were also received on time and in the correct amount, but you entered them later. You can easily catch up:

9. Click on row #3.
   1. Select "Payment" for the series.
   2. Set the date to April 16.
   3. In the "Amount" column, enter $230.91.
   4. Enter 3 for "# Periods".

• Your screen should now look like this. See Fig. 4:

• So far, all payments have been received in the correct amount and on the scheduled due dates. Next, check the loan payoff amount after these four payments:

10. Click the Schedule button.
    1. As of June 16, after the payment, the payoff amount is $4,412.77. See Fig. 5.

• The borrower makes the fifth payment early and includes an extra $100.00.

11. Record the early payment with the extra amount:
    1. Click on row #4 and set the series to "Payment".
    2. Set the date to July 10.
    3. Set the amount to $330.91. (This includes the extra $100.00.)
    4. Set the "# Periods" to 1.

• The next payment is not made in full, and the borrower is now behind schedule.

12. Record a missed payment followed by a partial payment:
    1. Click on row #5 and set the series to "Payment".
    2. Set the date to September 16.
    3. Set the amount to $180.91.
    4. Set the "# Periods" to 1.

• After four regular payments, one early payment with an extra $100.00, and one payment that is $50.00 short, your cash flow data screen should look like this. See Fig. 6:

• Note: You do not need to enter 0.00 for a missed payment. However, entering it may help with recordkeeping. It explicitly shows the missed payment and forces the calculator to compute the balance as of that payment’s due date.

• Note: Interest is being calculated through August 16 and added to the loan balance.

• Your borrower needs additional funds. You approve an additional loan and add it to the existing loan balance.

13. Add an additional loan:
    1. Click on the empty row after the last payment. This will be row #6.
    2. Select "Loan" for the series. See Fig. 7.
    3. Enter October 1 in the Date column. This is the date the funds become available.
    4. In the "Amount" column, enter the new loan amount: $1,000.00.
    5. Enter 1 for "# Periods" (a single loan disbursement).

• Because a new loan amount has been added, you will now calculate a new payment. The borrower has agreed to repay the full balance in 18 additional monthly payments.

14. Adjust the payment amount based on the new loan:
    1. Click on the empty row following the newly entered loan.
    2. Select "Payment" for the series.
    3. Set the Date to October 16. Monthly payments will continue on the 16th of each month.
    4. In the "Amount" column, type U for "Unknown".
    5. Enter 18 for "# Periods".
    6. Set the frequency to "Monthly".

• If you’ve been following the tutorial, your screen should now look like this:

15. Click the Calculate button.
    • The new monthly payment will be $286.78. See Fig. 8.

16. The borrower makes a full payment but two days late:
    • Edit the payment in row #7.
    1. Leave Series set to "Payment".
    2. Change the Date to October 18.
    3. Leave the Amount set to $286.78 (full payment).
    4. Change the "# Periods" from 18 to 1 (only one payment is being recorded).

• Continue entering payments (and loan advances) as they are received until the loan is fully repaid. You may enter a payment of $0.00 on any date to calculate the loan balance as of that date. See Fig. 10.

17. Calculate the unpaid principal balance as of any date:
    • Assume no payments are made after October 18:
    1. Leave Series set to "Payment".
    2. Change the Date to January 1.
    3. Set the Amount to $0.00 (no payment is made). See Fig. 10.
    4. Click the Schedule button. The row for January 1 will display the loan balance, including interest accrued since the October 18 payment. See Fig. 11.
18. Calculate the loan’s payoff amount as of any date:
    • Repeat the steps from step 17, but set the Amount on January 1 to "Unknown".
    • Change the rounding option to "Adjust last amount to reach a "0" balance".
    • The calculator will determine the payoff amount. The schedule will show a final balance of $0.00.
    • The calculated payoff amount will match the balance shown in step 17, adjusted for rounding.

• You can display the same loan in two ways:
  • Follow the steps in step 17 to view the balance as of January 1.
  • Follow the steps in step 18 to calculate the full payoff amount and confirm that the balance is zero.

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.