![]() We can visualize the impact with a nice chart (requires some extra work) like this:ĭo check the download workbook for details on how the chart is setup. Go ahead and play with the table by typing some values in the “Extra payment” column. Step 3: Your mortgage will end when the “Eff. Closing Balance is opening balance minus principal paid minus extra payment.Ĭomplete this table with necessary formulas and fill everything down.Extra Payment is the input column where we can type any extra payments.We can get this with the PPMT() function. Principal Paid is the amount of principal paid in each month.Simply add an extra 1/12 of a mortgage payment to your regular payment and apply it to principal. If your lender does not offer a bi-weekly option or charges for the service, you can do the same thing yourself for free. =ROUND(NPER($E$7/12,$E$10,$D13),0) will tell us how many months it is rounded. If using bi-weekly payments, the interest is only 150,977.71 saving you 35,533.86 over the life of the loan. We can use NPER function to get the answer here. Effective term is how long it would take you to pay off the mortgage based on the opening balance, and agreed upon monthly payment (calculated in Step 1) and interest rate (Cell E7).For subsequent months, this will same as previous month’s closing balance. There are 52 weeks in the year, which means that on a biweekly payment plan, you would make 26 payments per year. The calculator updates results automatically when you change. Bi-weekly is not the same as twice a month. Our Excel mortgage calculator spreadsheet offers the following features: works offline easily savable allows extra payments to be added monthly shows total interest paid & a month-by-month amortization schedule Microsoft Excel Mortgage Calculator Spreadsheet Usage Instructions. The concept of a twice-monthly payment is a bit misleading. Opening Balance is same as loan amount for month=1. Instead of paying one monthly payment, they pay half the payment twice a month.Related: Read about SEQUENCE and other Dynamic Array functions in Excel. You can use =SEQUENCE(360) to automatically generate all the months. ![]() So, set up a range of 360 months (or longer if you want to cater for longer mortgages). In my case, let’s say loan is $500,000, term is 20 years and APR (Interest rate) is 5.35% per annum.Īs extra payment will bring down the outstanding loan term, we need to set up an amortization table to see the impact clearly. Step 1: Calculate the monthly (or weekly / fortnightly) payment:Īssuming you have the Loan amount, term & APR in three cells E5, E6 & E7, we can use the PMT() function to calculate the periodic payment.
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