Overview
The purpose of this tool is to demonstrate the impact of making extra loan repayments, including the associated time and interest saved over the life of the loan.
Variables & input fields
1. Start Date
Defines the start date of the loan.
2. Loan Amount
This represents the total amount financed.
3. Loan Term
This is the current loan term (in years).
4. Interest Rate (%)
This represents the interest rate on the loan.
5. Payment Frequency
This sets the parameters for how often repayments are made.
6. Extra Contribution
This represents the extra contribution to be made (above the current loan repayment amount)
7. Start Extra After
This determines when the extra contributions will start being made.
8. Graph
Demonstrates the results of the tool via a graph.
9. Time Saved
This represents how much time will be saved factoring in the extra loan repayments.
10. Interest Saved
This shows how much interest you'll save by making extra loan repayments.
11. Updated Loan Term
This shows the new loan term (ie. how long it'll take for the loan to be paid out with extra repayments).
12. Payments Before & After
This demonstrates the original repayment amount and how much the repayment will increase to when the extra repayments start.
How do I use it?
The idea is that you sit with your client and take them through the variables asking them to participate whilst explaining the concept to them.
Once completed, our Extra Loan Repayment Calculator will demonstrate the impact that making additional loan repayments has on the overall life of the loan as shown in "Your Results."
We use this in conjunction with our Loan Calculator. Use the loan calculator first to work out how much your client can borrow, and use our Extra Loan Repayment Calculator to demonstrate how much time and interest they can save! Note that variables such as interest rate and original loan amount don't have to be exact, but exact rates and loan amounts will show a more precise result.
Variables & input fields
1. Start Date
Defines the start date of the loan.
2. Loan Amount
This represents the total amount financed.
3. Loan Term
This is the current loan term (in years).
4. Interest Rate (%)
This represents the interest rate on the loan.
5. Payment Frequency
This sets the parameters for how often repayments are made.
6. Extra Contribution
This represents the extra contribution to be made (above the current loan repayment amount)
7. Start Extra After
This determines when the extra contributions will start being made.
8. Graph
Demonstrates the results of the tool via a graph.
9. Time Saved
This represents how much time will be saved factoring in the extra loan repayments.
10. Interest Saved
This shows how much interest you'll save by making extra loan repayments.
11. Updated Loan Term
This shows the new loan term (ie. how long it'll take for the loan to be paid out with extra repayments).
12. Payments Before & After
This demonstrates the original repayment amount and how much the repayment will increase to when the extra repayments start.
How do I use it?
The idea is that you sit with your client and take them through the variables asking them to participate whilst explaining the concept to them.
Once completed, our Extra Loan Repayment Calculator will demonstrate the impact that making additional loan repayments has on the overall life of the loan as shown in "Your Results."
We use this in conjunction with our Loan Calculator. Use the loan calculator first to work out how much your client can borrow, and use our Extra Loan Repayment Calculator to demonstrate how much time and interest they can save! Note that variables such as interest rate and original loan amount don't have to be exact, but exact rates and loan amounts will show a more precise result.
Related Links
Check out this link for various elements shared throughout the various toolsets.