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Loan Prepayment Simulator

Simulate interest savings and term reduction from mortgage prepayments. Compare term-shortening and payment-reduction methods.

Loan Info

JPY
%
years

Prepayment Info

JPY
month

Before Prepayment

Monthly Payment91,855JPY
Total Interest8,579,289JPY
Payment Count420times

After Prepayment

Monthly Payment91,855JPY
Total Interest5,689,152JPY
Payment Count335times

Effect

Interest Saved2,890,137JPY
Months Saved85months

How to Use

Enter the loan amount, interest rate, and loan term, then select the prepayment amount, timing, and method. "Term shortening" keeps the monthly payment the same while shortening the loan term. "Payment reduction" keeps the term the same while reducing the monthly payment.

About the Formula

Based on the equal payment method, the simulation calculates monthly results when a prepayment is made at the specified month. For term shortening, the prepayment is subtracted from the balance and the payoff date is calculated at the same monthly payment. For payment reduction, the prepayment is subtracted from the balance and a new monthly payment is recalculated for the remaining term.

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