How can you Calculate Early Pay Off Personal Loan?
If you are a person who wants to pay off the personal loan as quickly as you want, then here are the calculation tips for you.
Many of you people want to pay off the personal loan early to save yourself from the other extra finances. If you want to calculate to pay off early, you have to know the remaining interest rate and payment.
If you pay the personal loan easy your loan term will be decreased. And, you can use the monthly payments for investing and saving for the future.
Step by step guidelines to calculate early pay off personal loan:
Here are some step by step guidelines to help you in calculating early pay off your personal loan:
First of all, find out the remaining payment that you to have and the interest rate. Once, you will get to know what is the remaining amount that you have to pay is, you can do further calculations.
Take the percentage rate of per anum and divide it with the total days of the year. After that, the answer will be multiplied by the number of days of the last payment was received into the total balance.
An example of this can be that if the personal loan that is remaining is $3,500 and the interest rate on this amount will be 7%. 14 days is the time when last payment was received and you are expecting to pay off your remaining loan in next 10 days.
For the calculation, you have to divide the amount by 360 and then multiply by 24. And then, the answer will be multiplied by the balance.
For example, if you have paid the payment on the date December 1 and the date today is December 15. That means you have made the payments 14 days ago.
And, you are expecting to pay off the personal loan on the date December 24. You have to add the interest rate in the amount and that will be $15.64 to the remaining balance.
You have to check that if your payment is received early, then your lender is supposed to pay back the extra amount.
Any payments that will be received after December 24 that means you will have to pay back the amount.
You have to wait for your lender confirmation. Once it is done, you will receive a promissory note with a paid stamp.