Mortgage Amortization Payments and Paydown Analysis
The Mortgage Amortization with Paydown Calculator is a Google Sheets (and Excel XLS) spreadsheet which provides both a simple view of a loan or mortgage amortization schedule as well as the special capability to enter additional payments (Paydown) to estimate how much money in interest can be saved over the life of the loan or mortgage. You can use this spreadsheet to analyze your different options before making payments, or to better understand the history of payments you've already made and how they've impacted your interest and principal.
This calculator is a SPREADSHEET - so it is super simple to use yet provides powerful calculations that help people make decisions about paying down their mortgage.
The Mortgage Amortization with Paydown Spreadsheet lets you quickly enter the components of your monthly mortgage payment and the potential impact of paying more each month - or in specific months - on the end date and total interest paid on your loan. This Spreadsheet also allows you to add additional components of the monthly payment (which you can enter as monthly or annual amounts) and presents a pie chart graph to help you better understand the ratio of each component.
Paying more toward your mortgage reduces the total interest paid over the life of the loan and also shortens the life of the loan. This calculator is downloaded as an Excel (XLS) spreadsheet, but you can request the Google Sheets version to get your own copy in your Google Drive / Sheets account.
NOTE: the spreadsheet comes populated with sample data - be sure to change the green input cells with YOUR data!
The Mortgage Amortization Paydown spreadsheet is incredibly easy to use:
Step 1:
Enter your loan information
Loan Principal/Amount
Term of loan in years
Interest rate
First payment date
OPTIONAL: Add other monthly costs included in your mortgage payment, such as Property Taxes and homeowners or mortgage insurance. You can put a monthly OR annual amount and the sheet will automatically make it all monthly for you.
STEP 2:
With all your mortgage information entered, you now get a view of your estimated TOTAL INTEREST PAID over the life of the loan, and your FINAL PAYMENT DATE (subject to specific bank rules related to that, of course).
If you enter additional payment ("paydown") amounts below (see next step), you will also see here a comparison of your new loan final payment date and the interest paid - with the time and money saved over the life of the loan!
The graph in this results area shows a simple breakdown of your monthly payment, which is particularly useful if you entered the optional additional payment components like insurance and property taxes.
STEP 3:
At this step you already have a VERY USEFUL full loan amortization schedule - month-by-month! But here is where this spreadsheet gives you the most useful feature - the ability to enter any additional loan payments you plan to make (or have already made) at any month through the life of the loan or mortgage. As you enter additional payments, your principal balance reduces and your amortization schedule adjusts. Most importantly, the number of payment periods reduces, and the life of your loan decreases - meaning you reduce your total interest paid and get out from under your debt sooner!
The Amortization Schedule is presented with Payment period, Date of payment, Payment Amount, Interest portion of payment, Principal portion of payment - plus any additional payment components you added above - and the new Principal Balance at the end of every payment period.
Here is where you can optionally enter additional payments at the dates associated with any payment. You can enter additional payment amounts and the Amortization Schedule, as well as all the output calculations above, will be recalculated for you showing you how much you saved over the life of the loan by making those additional payments!
Additional value:
You're done at this step - but you can move to the next sheet to see an annual summary of the amortization schedule with annual totals of interest and principal as well as cumulative amounts at the end of each annual period .
The Mortgage Amortization with Paydown calculator can save you time and money - and give you the opportunity to weigh your options knowing how much money you can save over the life of a loan or mortgage.
