The mortgage penalty calculator takes prepayment amount, how much have you prepaid since january 1st of this calendar year?, original mortgage principal, annual prepayment privilege and one way and returns amount exceeding privilege, privilege amount and total prepayment. It is built for quick answers, for checking somebody else’s arithmetic, and for the moments when a formula book is not within reach.
What Is the Mortgage Penalty Calculator?
The mortgage penalty calculator takes prepayment amount, how much have you prepaid since january 1st of this calendar year?, original mortgage principal, annual prepayment privilege and one way and turns them into amount exceeding privilege, privilege amount and total prepayment.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Mortgage Penalty Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with prepayment amount set to 10, how much have you prepaid since january 1st of this calendar year? set to 5, original mortgage principal set to 2, the calculator returns privilege amount of 200, and total prepayment of 15, and amount exceeding privilege of -185. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out amount exceeding privilege?
Enter prepayment amount, how much have you prepaid since january 1st of this calendar year?, original mortgage principal, annual prepayment privilege and one way. The calculator then works through the relationship and reports amount exceeding privilege, privilege amount and total prepayment.
What does the mortgage penalty actually calculate?
It takes prepayment amount, how much have you prepaid since january 1st of this calendar year?, original mortgage principal, annual prepayment privilege and one way and converts them into amount exceeding privilege, privilege amount and total prepayment using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter prepayment amount?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Can I use this for a quick estimate as well as a precise answer?
Yes. The calculator is built for quick checks, so round your inputs to a sensible number of significant figures and the result will be just as useful. If you need more precision, keep the same method and add digits to the inputs rather than adjusting the method itself.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.