Future Balance
Interest Accrued
Principal Paid
Savings from Extra
| Month | Payment | Interest | Principal | Balance |
|---|
Future Loan Value: A Comprehensive Guide
The Future Loan Value Calculator projects remaining balance after months with payments/extras. Simulates amortization for accurate balance, interest, and savings. This free tool builds partial schedules. Guide explains formulas, uses, strategies for faster payoff.
What is Future Loan Value?
Remaining principal after time/payments. Opposite of FV investments.
Why Calculate Future Balance?
- Refinance Planning: Current payoff amount.
- Sell Asset: Loan balance for equity.
- Extra Payments: See impact.
- Budgeting: Future obligations.
Link to Early Payoff Savings.
How It's Calculated
Monthly: Interest = balance × rate/12; Principal = payment - interest; New balance = old - principal. Loop for months, add extras.
Closed-form: FV = P × (1+r)^n - PMT × ((1+r)^n - 1)/r
Example: $150k, 6.5%, $900/mo, 24mo → ~$138k future.
With Extra Payments
Reduce principal faster, compound savings.
Interest-Only Scenario
No payment → balance grows: P × (1 + r/12)^months
Tips for Lower Balance
- Biweekly Payments: Extra principal.
- Round Up: Small extras.
- Refinance: Lower rate.
- Lump Sums: Annual bonuses.
Use Refinance Break-Even.
Common Mistakes
- Ignoring Fees: Prepayment penalties.
- Variable Rates: Not supported.
- Wrong Compounding: Assume monthly.
Limitations
Fixed rate, no fees/taxes. For full, use amortization.
Conclusion
Know your future loan obligations for better planning. Our calculator visualizes progress. Explore Amortization or Payoff Date.