ToolBox CS
Warning
Product support for ToolBox CS ended on October 31, 2022.
Help & How-To Center content for ToolBox CS may be outdated and is used at your own risk.
This calculator shows the savings in both time and dollars when a lump-sum is paid to bring down a loan balance.
Note: This calculator does not take any prior payments or loan balance into account. It starts from the current loan balance and goes forward.
Example
What if your client has $100,000 remaining on his mortgage, and he makes a $10,000 lump-sum payment?
| Field | Input |
|---|---|
| Loan balance | $100,000 |
| Lump-sum payment | $10,000 |
| Each payment | $900 |
| Payments per year | 12 |
| Annual interest rate | 6% |
| Compounded | Payment Date |
In this example, the mortgage would be shorter by two years, and the client would save $11,254.40 in interest expense.
Note: The compounded daily calculation uses 365 days. The other option for compounding interest is each payment date. The difference between the interest rate and the effective interest rate is caused by the compounding of interest.
Copying and pasting loan payment schedules into Excel or other applications
View this procedure to find out how you can copy loan payment schedules from this calculator to the application clipboard, and then paste them into Excel or other applications.
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