How to calculate updated loan payoff amount?

I’m new to terms deals, just sold my first couple of properties. I’m a little lost at what I need to do next. Specifically, I have this question: if a buyer pays extra per month, how do I calculate the new payoff amount when their loan balance has deviated from the original payment schedule?

What other things am I going to need to know as I navigate these new types of sales?


@freesiapropco it sounds like you could benefit from some basic loan amortization software, or even the basic amortization spreadsheet that comes free with Microsoft excel.

How are you collecting monthly payments? If you use a loan servicing company, they’ll figure all this out for you. If you’re using something like Zimple of GeekPay, I believe those will also auto-calculate the revised balances for you (the payment amount won’t change, but the allocation of principal vs interest will if they start making extra principal payments).

@charlotteirwin Yes, I’m collecting the payments myself and self-managing for now. So if I have a normal amortization schedule, can I just add a line for the extra payment on the date they pay it to have it recalculate the new interest/principal balance?

@freesiapropco yes, that’s how every amortization calculator has worked in my experience. I just did a quick google search and found this amortization schedule worksheet, you might find it helpful.

To save a copy for yourself, go up to File > Make a Copy and save it to your own Google account.

1 Like

You can use repayment software. Even a basic spreadsheet will suffice for repayment, which comes free with Microsoft Excel. If you go to a loan servicing company, they will take care of everything for you. But it’s much easier to go to a company, and they’ll do it for you. When I took out a loan at, it immediately calculated how much money I had to pay per month. It’s much more convenient than calculating it yourself. But it’s up to you to decide how you want to proceed.