Accelerated Mortgage Payoff Calculator Loan Amount: Interest Rate: Loan Term (in years): Extra Payment: Calculate Payoff Results Number of Payments: Total Payoff: Total Interest: function calculatePayoff() { var loanAmount = parseFloat(document.getElementById("loanAmount").value); var interestRate = parseFloat(document.getElementById("interestRate").value) / 100; var loanTerm = parseFloat(document.getElementById("loanTerm").value) * 12; var extraPayment = parseFloat(document.getElementById("extraPayment").value); var monthlyPayment = calculateMonthlyPayment(loanAmount, interestRate, loanTerm); var numberOfPayments = Math.ceil(loanTerm/12); var totalPayoff = calculateTotalPayoff(monthlyPayment, extraPayment, numberOfPayments); var totalInterest = totalPayoff - loanAmount; document.getElementById("numberOfPayments").innerText = numberOfPayments + " months"; document.getElementById("totalPayoff").innerText = "$" + totalPayoff.toFixed(2); document.getElementById("totalInterest").innerText = "$" + totalInterest.toFixed(2); } function calculateMonthlyPayment(loanAmount, interestRate, loanTerm) { var interestYearly = interestRate/12; var base = Math.pow((1 + interestYearly), loanTerm); var monthlyPayment = (loanAmount * base * interestYearly)/(base - 1); return monthlyPayment; } function calculateTotalPayoff(monthlyPayment, extraPayment, numberOfPayments) { return (monthlyPayment + extraPayment) * numberOfPayments; } What is an Accelerated Mortgage Payoff Calculator? An accelerated mortgage payoff calculator is a tool used by homeowners to make predictions about the time and money they could save if they were to use an accelerated mortgage or home loan payoff strategy. Accelerated mortgage payoffs involve making principal payments on the loan more frequently than the standard monthly payment, such as bi-weekly, bi-monthly, or fortnightly. Such a strategy is often used to pay off a loan sooner and save money on interest. This type of calculator can help you visualize and better understand the potential savings you may realize if you make these additional payments. How Does An Accelerated Mortgage Payoff Calculator Work? The accelerated mortgage payoff calculator typically presents the user with two scenarios side by side. The first is the typical monthly payment over the course of the loan period. The second is the accelerated payment scenario where the user enters their proposed additional payment amounts. This type of calculator will then compute the total amount of interest saved with the schedule of additional payments, as well as the reduced payoff timeline. Features of Accelerated Mortgage Payoff Calculators Though software is available to download, many online accelerated mortgage payoff calculators are available to use at no cost, and some even allow you to save your custom scenario within their system. Many of these calculators don’t require users to input all of their loan details including interest rates, terms, and balances, as this information is already stored in the calculator. One feature that these calculators may also offer is the ability to compare two separate scenarios and its respective time and money savings side-by-side. This way the user can compare estimated interest savings from various additional payment amounts, to quickly decide which option provides the best outcome. Benefits of Using an Accelerated Mortgage Payoff Calculator One of the key benefits to using an accelerated mortgage payoff calculator is that it helps users to visualize and understand the benefit of making additional payments over the course of their loan. It also allows users to compare their choices, allowing them to make smarter financial decisions. Additionally, this type of calculator offers users the ability to customize their mortgage payment plan to fit their budget and each loan can be saved in the calculator for future reference. Furthermore, some accelerated mortgage payoff calculators also allow users to review their amortization schedule or open up the loan summary page which allows the user to review all of the additional payment transactions. Conclusion Accelerated mortgage payoff calculators are tools that can help potential homebuyers and existing homeowners estimate the potential monetary and time savings from making additional payments toward the principal balance on their loan. Investing in a mortgage calculator can provide great value to every homeowner, as it allows them to customize their mortgage payments to fit into their budget and provides a clear visualization of the savings that can be achieved by making accelerated payments on the loan.