Effect of Lump-Sum Payment on Loan Calculator

Alerts and notices

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.


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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