Calculate your yearly, quarterly, monthly, weekly loan payments, the number of payments, loan principal, and interest paid.
Example: Loan amount $80,000 with an interest rate of 10 percent, and the loan term is one year.
Monthly payment calculated with the PMT financial function = (80000 x 0.05 ÷12) ÷ [1 - (1 + 0.05 ÷ 12) (-12 x 1) ] = 333.33 ÷ 0.05 = $6,848.6
Total interest paid = $2,183.18
The loan term is 12 months means 12 payment
But if you add an extra monthly payment of $5,000
Monthly payment will be = $11,848.6
Total interest paid will be = $1,318.72
Interest savings from extra payments = $864.46
Finish with 7 payments rather than 12 payments.