# Accurate Loan Payoff Calculator™

### What is a loan payoff amount?

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.

**Subscribe to the**

*Ultimate Financial Calculator*for unlimited printing and file saving.#### 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 had__unless__you reselect your preferred setting. - 2023: Save any schedule's data to
**Word/docx**or**Excel/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

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

- Set "Schedule Type" to
**"Loan"**- Or click the [Clear] button to clear any previous entries.

- 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

- Set the "Days Per Year" option to "360 Days Per Year" by clicking on the {Setting} {360 / 365 Days}
- In the header section, make the following settings:
- For "Calculate Method" select
**"Normal"**. - Set "Initial Compounding" to
**"Monthly"**. - Enter
**5.25**for the "Initial Interest Rate".

- For "Calculate Method" select

- In row one of the cash flow input area, create a "Loan" series
- Set the "Date" to
**February 16** - Set the "Amount" to
**5,250.00** - 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

- Set the "Date" to

- 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?

- Enter known payment details in second row
- Set the series to
**"Payment"** - Leave the "Date" set to
**March 16** - In the "Amount" column type
**"U"**for "Unknown" Fig. 2 - Set the number of periods to
**24** - Set Frequency to
**"Monthly"**. (The "End Date" will be February 16.)

- Set the series to

- Your screen will now look like this:

- Click the "Calculate" button
- The expected, periodic payment is $230.91 Fig. 3

- 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:

- The 1st payment is received on time. Click on row #2
- Select
**"Payment"**for the series - Leave the date set to
**March 16** - In the "Amount" column enter
**$230.91** - Enter
**"1"**for "# Periods" (recording 1 payment)

- Select

- 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:

- Click on row 3
- Select
**"Payment"**for the series - Set the date to the
**April 16** - In the "Amount" column enter
**$230.91** - Enter a
**"3"**under "# Periods"

- Select

- Your screen should now look like this Fig. 4:

- 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:

- Click on the "[Schedule]" button
- As of June 16, after the payment, the payoff amount is $4,412.77 Fig. 5

- The borrower is reliable and not only does he pay the 5th payment early, he also pays an extra $100.

- Normal payment plus an extra payment. To record this:
- Click on the fourth row. Set the series to
**"Payment"** - Set the date to
**"July 10"** - Set the "Amount" to
**$330.91**. (Includes the extra $100.00.) - Set the "# Periods" to
**1**

- Click on the fourth row. Set the series to

- So much for the debtor being reliable.

- Missed payment followed by under payment:
- Click on the fifth row. Set series to
**"Payment"** - Set the date to
**"September 16"** - Set the "Amount" to
**"$180.91"** - Set the "# Periods" to
**1**

- Click on the fifth row. Set series to

- 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:

- 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.

- Add an additional loan
- Click on the empty row after the last payment. This will be row six
- Select "Loan" for the series Fig. 7
- You will make the funds available on October 1st. Enter
**October 1**in the Date column - In the "Amount" column enter the new loan amount
**$1,000.00** - 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.

- Adjust payment due to new borrow
- Click on the empty row after loan just entered
- Select
**"Payment"**for the Series - The payments will continue to be due on the 16th of each month. Set the "Date" set to
**"October 16"** - In the "Amount" column type
**"U"**for "Unknown". - Set the "# Periods" to
**18** - Set "Frequency" to
**"Monthly"**

- Before clicking "Calculate", your screen will look like this if you've been following along:

- Click
**"[Calculate]"**- The new payment will be
**$286.78 Fig. 8**

- The new payment will be

- Next, borrower pays the full payment amount, however he does pay two days late:
- Edit the payment in row 7.

- Leave "Series" set to
**"Payment** - Change the "Date" to
**"October 18"** - Since the full payment is paid, leave the amount as it is,
**$286.78** - Only one payment is being made. Change the "18" to
**"1"**in the "# Periods" column

- 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

- Next, borrower pays the full payment amount, however he does pay two days late:
- Edit the payment in row 7.

- Leave "Series" set to
**"Payment** - Change the "Date" to
**"October 18"** - Since the full payment is paid, leave the amount as it is,
**$286.78** - Only one payment is being made. Change the "18" to
**"1"**in the "# Periods" column

**Calculate the unpaid principal balance as of any date:**- Assuming no payments are made after Oct. 18:

- Leave "Series" set to
**"Payment** - Change the "Date" to
**"January 1"** - Since we want the loan balance on a day when no payment is paid set the amount to
**$0.00**Fig. 10 - Click on [Schedule], the row for January 1 will show the loan balance, including the interest accrued since the Oct. 18th payment. Fig. 11

**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.

- Follow the steps in 17, but set the Jan. 1 amount to

- 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.

## Candace says:

Great calculator. Thank you!!

## Karl says:

You’re welcome! Glad to hear that you like it.

## John says:

I made a personal loan Jan 18, 2018 of $140,000.00 at 4.99% for a period of 5 years.

principle $140,000.00

interest $18,500.00

total $158,500.00

I have received regular monthly payments over the 5 years but as of Jan 19, 2023, at the end of the loan term, payments only totaled $93,342.80.

I would like to populate your calculator with the payment dates and amounts to make a printable statement.

Additionally, I would like to determine reasonable interest for remaining balance for payoff.

Can you assist ?

Thanks

## Karl says:

Please read the tutorial below the calculator. That should get you started.

Then, if you have a specific question or something is not clear, please ask.

"Can you assist?" is a bit too general, considering I’ve already provided assistance by writing out a step-by-step guide.

## Brian Arnold says:

I am working on the loan payoff that is out of the ordinary. My situation is the payee (a relative) never paid according to the terms of a loan. He was to pay each Aug 1 and each Sept 1 each year so I entered 22 years of 0 as a payment – and I also entered the erratic payments that were made and entered them as the date they were received. When I did both, I get a payoff amount a few thousand larger than if I just entered the erratic payments themselves that I calculated as a second version of the payoff.

The amount paid is the same in both versions, but they do not come out to the same payoff amount.

So which is correct? I expected to see the same payoff amount in both versions but the difference was $900 higher when I entered the $0 payment along with the actual payments.

## Karl says:

Sorry I missed answering this yesterday.

The specifics are always important, and since the specifics are missing, I can only venture a guess. When you enter 0 payment, the interest is calculated and added to the balance (even when a payment is not made, the interest is due regardless).

Since with normal amortization, there will be interest-on-interest, you can expect the balance to be higher when you enter 0 payments.

If this is not clear, please ask again.

## Shaun Burgess says:

I’m working on a payoff for someone that never made a payment. I lent someone $62,127.90, payable monthly, at 8.5%, with payments that were to commence on Sept 1, 2010. In addition, any late payment carried a late fee of 5%. I never received a payment. I’m hoping your calculator can help me figure out the total amount owed as of March 2023, including all accrued interest and late fees. I can’t find anywhere to add the late fees. Any help is greatly appreciated. Thank you!

## Karl says:

Yes, this calculator will be able to do what you need.

I’ll assume you already have figured out how to create a basic loan schedule and how to calculate an unknown payment.

In the "Series" one of the options is "Fees". This is for any fee, including late fees. The calculator will not calculate the fee amount for you. If the late fee is 5% of the payment amount that is due, calculate what that amount is and enter it along with the date.

One other point. If the debtor has completely missed making a payment, then enter $0 for the payment missed (you do not need to do this if the payment is simply late). Entering 0 for missed payments triggers an interest calculation. The interest amount is added to the balance, which is generally what lenders want to do.

## Shaun Burgess says:

Hi, I’m still having issues adding the late fee. When I click on “Series Options” the only tab that opens is the Initial Loan Options. I tried entering both the monthly ($22) late fee as well as the total late fees over the 11 years but neither appear to be adding to the balance. Also, the amount I enter in the “Other Charges & Fee” box is reducing the Initial Amount Financed (the system thinks it’s an initial closing cost). I can’t find anywhere else to enter it. What am I doing wrong?

## Karl says:

Hi Shaun, it’s not the "Series Options" column you want to click under, but rather the leftmost column, "Series." There you’ll find "Loan," "Payment," "Fee," etc. Let me know if this works for you please.

## Fred Chalmers says:

sorry but the online calculators are free?

## Karl says:

They are free to use, yes. They are not free to put on another website.

## tardis says:

thanks a lot for writing back. I couldn’t find any prices for the using the api on a website (or more likely i am blind and/or lazy)

## Karl says:

You are neither. I don’t publish such a price since there are too many variables.

If you wish to discuss this further, then please contact me via email. The email address is on the contact page. Links to which are at the bottom of every page.

## Stephen says:

I don’t understand why when I tried to print the schedule and then nothing happen… Until rolling down seeing this message incurred “# Periods” must be greater than “1” or “Unknown” to select a frequency. What I’m trying to do is loan amortization with missing payments and extra payments. Could you please assist?

## Karl says:

Let’s try to solve one problem at a time. We will hold off on problems with printing, for now.

First thing is to get the schedule the way you need it in the print preview mode. That is, you get a useable schedule when you click on the Schedule button.

To get to a point where you can create a schedule, you have to have the loan and payment entries correct. I think the best way to learn the concepts needed to get the entries correct is to scroll down the page and actually work through the example. Please try that and then if something is not clear, ask about it. The calculator will do what you need.

## Karl says:

I’ll add, it is probably best if you go through this tutorial first. It introduces the basic concepts for this calculator.

## Jason Lake says:

I’ve had decent success with creating various scenarios, but I have been unable to create a regular loan schedule or a balloon schedule that handles deferred payments.

The scenario is a 12 year loan, with principal and interest payments deferred for the first 3 years. Then regular payments start with a balloon payment at the end, essentially for the 36 months skipped originally, but I was trying to have it dump that missed interest paid and any additional interest accrued from the principal payments being deferred for 36 months to the end of the loan and included in the balloon payment. Regardless of the Long Option I select, it either adds not interest, at origination date or 1 payment date. The amortized option still shows a payment of 12k of interest and -11k to principal for the first payment date.

## Karl says:

I’m not sure I understand what you’re trying to do, so let me rephrase what you need before I answer your question and you can tell me if I’m on the right track.

For the first three years of this loan, the debtor doesn’t make any payments, and rather than have the interest for the first three years paid with the loan origination or the first payment, you want to have the interest paid with the last payment, which happens to be a balloon. Correct?

The calculator should be able to handle this.

Leave long period interest set to “Amortized.”

The first row will be the loan amount.

The second row will be the regular payments. You enter the amount you want. You can use a preliminary calculation to get a “normal” payment amount, if you like, based on the term of the loan.

The third row will be the unknown balloon amount. (This is, of course, assuming you want to calculate the balloon. You could also enter the amount of the balloon you want, and have the calculator calculate the regular payment amount.)

When you look at the schedule, you’ll probably see the interest for the first payment as a negative amount. It is added to the balance and then amortized with the loan.

How does this sound?

## Jason Lake says:

I can see how that is working with that negative adding to the balance. It just looks a bit funny and likely confusing to the non-financial minded person.

Is there a way to show the calculations for the first 36 periods, to show the interest accruing each of those period, but no payments being made and the balance increasing each month, instead of all at once with the first payment? In other words, is there a way to show all 144 periods covered between the origination date and the final payment date, instead of those first 36 periods being hidden?

## Karl says:

Yes.

Make the 2nd row a payment row for 0 amount and 36 monthly periods. The report will show the interest accruing.

## Karl says:

By the way, if you do show the first 36 payments as 0 amount, you’ll get a different total accrued amount than if you don’t show the 0 amounts.

This is because the interest is getting posted to the balance sooner and interest is earned on interest.

If this is not what you want, you may want to set the calculation method to U.S. Rule.

## Jason Lake says:

That solution is much better. The US Rule is certainly cleaner looking and less confusing, as long as you don’t need to accrue on the interest. I had mostly been trying to utilize the loan calculator with the balloon options, but this Accurate Loan Payoff Calculator is probably the best for handling this, since you have more control over the deferred payment data. Thank you!

## Karl says:

Glad to hear it’s working for you and thanks for letting me know.

## t0juandaPG says:

When I save a file and try to open the file later, the calculator states that it cannot open the file. Sometimes it will open my files, I cannot figure out why it opens the some of my files but not others. Please help.

## Karl says:

Please email me the files that you can’t open to the email address on the contact page.

What’s the specific error message you see?

I will point out that you should only be emailing me ".xml" files, since those are the only files that the calculators open.