While everyone have their own reasons and deadlines to repay their loans, loan pay off calculator helps an individual to strategize their payments from faster and efficient pay offs.
Loan, Pay Off Overview
A loan is a thing, especially a sum of money, that is borrowed to buy homes, vehicles, furniture, for education and anything else they can finance. It has to be paid back with interests which will lead to a rise in the total cost of the product you purchased using the loan.
Payoff amount is how much you will actually have to pay to satisfy the terms of your mortgage loan and completely pay off your debt. Current balance and payoff amount is different as payoff also includes the payment of any interest you owe through the day you intend to pay off your loan.
A loan payoff letter is a document you can acquire at any stage of a loan, for your first payment or just making your last. It includes all of the information you need related to how much you owe to your lender and the options you have for paying off your debt.
Loan Pay Off Calculator
Paying off the loan at the end of the term is a good practice to follow for effective management of personal finances. Loan Repayment Calculator assists you to calculate the interest amount for the entire loan term.
It will also help in determining the total interest amount saved if you accelerate your payment plan using bi-weekly payments. Bi-weekly payments help to pay less interests thereby reducing total loan costs.
In short, the goal is – how much and how fast to pay and become debt free in order to undertake wealth building for your future savings.
We have picked up three best loan payoff calculators that you can use for free online. Let’s take look at them in detail:
Money Under 30s Loan Pay Off Calculator
Money Under 30’s, a simple loan pay off calculator will tell you two things – how long will it take to pay off a given amount with a given monthly payment or how much you’ll need to pay per month to pay off a given amount in a fixed amount of time. The following would be the steps to use this calculator:
Step 1: Enter a loan amount and interest rate
Step 2: Enter monthly payments/number of months
Step 3: Click Calculate
Step 4: Result shows either your monthly payment or the number of months it will take to repay the loan.
Debt (Loan Pay Off) Snowball Calculator
With this calculator, you can plan and strategize your payments in order of your smallest obligation first and then moving to paying off your bigger ones — like rolling a snowball down a hill. This method is considered to be the most cost effective, fastest, and emotionally satisfying ways to get out of debt. This process encourages you to work effectively on your debt pay off.
How to plan to use the Snowball debt
Firstly, your debts are ordered from highest interest rate to lower interest rate to save the money. The calculator pays off the debt in the order entered. Another way to plan this is to rank your debts from smallest balance to highest balance, although it will cost you a little more interest.
How to calculate using SnowBall Calculator
Step 1: Enter the name, current balance, interest rate and minimum payment amount for all of your debts (up to a maximum of 10 debts).
Step 2: Enter a monthly dollar amount you could add to your accelerated debt payoff plan at the bottom right of the calculator.
Step 3: click the “Calculate Debt Snowball” button.
Financial Mentor Loan Pay Off Calculator
This calculator ascertains your monthly payment and interest cost to pay off your loan by any given date. It also shows you how much you can save by using biweekly payments to pay off your loan. The simple steps are – enter the amount owed, interest rate, and term. Then click the “Calculate Loan Repayment” button to get your answer.
Also Read: 10 Ways to Boost Your Savings