I noticed some of you that found my free amortization calculator were interested in being able to input additional payments to see how it would shorten the life of your mortgage. So I took the time to come up with the additional calculations to automate the process for you. This amortization calculator is still based on a standard 30 year mortgage with monthly payments, however I added a column called “Additional Payment”. In my example, I defaulted the additional payment column to $50, and as you can see, on a $90,000 loan amount, the additional $50 takes the 30 mortgage down to about 23 1/2 years. Not bad for a little bit more paid each month. Now, in order for this to work for you, you must instruct the bank in writing with each additional payment that you intend for the entire amount to go towards principle only. Without this instruction, they may apply a part of it to interest, just like your regular payment. Here’s a quick look at the first ten payments in this amortization tool:

Amortization Calculator with Additional Payments Applied
http://www.personalfinanceresources.com
           
Input Area        
Original Loan Amount $90,000.00        
Interest Rate 6.500%        
           
Automatic Calculation Area
Month (You may replace with Date) Total Payment (PI Only) Additional Payment Total to Principle Total to Interest New Balance
1 $568.86 $50.00 $131.36 $487.50 $89,868.64
2 $568.86 $50.00 $132.07 $486.79 $89,736.57
3 $568.86 $50.00 $132.79 $486.07 $89,603.78
4 $568.86 $50.00 $133.51 $485.35 $89,470.27
5 $568.86 $50.00 $134.23 $484.63 $89,336.04
6 $568.86 $50.00 $134.96 $483.90 $89,201.08
7 $568.86 $50.00 $135.69 $483.17 $89,065.39
8 $568.86 $50.00 $136.42 $482.44 $88,928.97
9 $568.86 $50.00 $137.16 $481.70 $88,791.81
10 $568.86 $50.00 $137.91 $480.96 $88,653.90

All you have to do with this amortization calculator is input your original loan amount and interest rate, and then input your additional payment amount in the appropriate column. This calculator is flexible, e.g. you can enter a different additional payment amount each month if you wish, and the calculations will automatically adjust. Have fun with this, and sign up for my RSS feed for updates to all the latest and greatest at this personal finance blog.

You may download the Amortization Calculator with Additional Payments Applied .xls free of charge.


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