Loans & Mortgages
Interest saved
The difference in total payments between the two schedules, both net of the balance.
The Formula
Saved = (payment x remaining months) - ((payment + extra) x new months)
The difference in total payments between the two schedules, both net of the balance.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| n0 | Original months | count | Months left on the current schedule. |
| n1 | New months | count | Months with the extra payment. |
What Each Symbol Means
n0count
Original months
Months left on the current schedule.
n1count
New months
Months with the extra payment.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate mortgage payoff page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Mortgage Payoff, filed under Finance. Every number the guide produces comes from substituting into this one line.