Finance
See how extra payments shorten a loan
=NPER(B1/12,-(B2+B4),B3)How it works in Excel
- B1/12 is the monthly rate.
- B2+B4 is the normal payment plus the extra.
- B3 is the amount owed.
- The answer is a number of months.
- Run it without the extra amount to see the months saved.
The idea in general
Extra money goes straight to the loan, so less interest builds up after that.
What I assumed
- The rate is in B1, the payment is in B2, the amount owed is in B3 and the extra is in B4.
Check the result on your own data before relying on it.