Template Video Tutorial:

If you have a house payment to make or any mortgage, this financial model is a great tool to help the planning and budgeting of the paydown. The template comes in an Excel document and a Google Sheet version as well (link in the Excel file). The inputs are really simple. Simply enter the current loan terms (remaining mortgage balance, payments per year, interest rate (variable or fixed), and remaining term.

The above inputs will automatically create a standard amortization schedule that shows you how much total interest and principal are paid over time based on the loan terms and making regularly scheduled payments for the entire term. Then, there is a second tab that is the same schedule, except it has an extra column for principal payments made above the initial monthly payment. The user can enter any amount in each period, and the schedule will automatically update. The more that is paid earlier, the quicker this second schedule finishes a payoff and the less interest that is paid.

Each tab has the total repayment summary of both scenarios (standard repayment and extra principal payment), so the user can see the total interest paid and the total periods it takes to complete the payoff.

There is also a clean visualization that will update as your data inputs change and shows the remaining balance of both schedules over time as well as the total interest saved per the extra payment schedule.