Okay, I just set up my amortization schedule for my house. I am currently paying about $15 extra. Paying $15 extra pays my house off 18 months early.

Doing the chart really shows me how much difference the extra really makes. It motivates me to send extra whenever I get the chance (after I pay off the other debt, right now anything extra we get is going to cc debt).

# Paying extra on mortgage

February 20th, 2006 at 05:16 am

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February 20th, 2006 at 02:09 pm 1140444579

February 20th, 2006 at 02:21 pm 1140445264

February 20th, 2006 at 02:25 pm 1140445502

And, $15.00................that's fairly easy to scrape up!!!

Congrats!

February 20th, 2006 at 10:45 pm 1140475557

I set up columns - payment month, current principal balance, interest payment, payment amount, new balance.

So, you take your interest rate (8%, say) and divide it by 12 to get the monthly rate (this only works for mortgage payments, other payments will need to be divided by either 365 or 360 to get your daily rate). Don't forget to convert the percentage to decimals - 8% = 0.08.

Multiple your current principal balance by the monthly interest rate. This tells you how much interest you are paying this month. Type in the payment amount you want to pay. Add the cell with principal balance to the cell with interest and subtract your payment - this is your new balance.

Move that balance to the next line, and do the same calculations. (I copy and paste once I have it set up).

So, my cells look like this (the formulas, not what actually shows)

A------------- B --------C -------------D ------------E

feb 06 ---80,0000-- =B*0/0067 ----800 ---- =B+C-D

What you can do is have B set up to equal cell E in the prior row (so B2=E1, in excel you do that by typing =E1 when you copy and paste, it should change the number to keep the same idea.