# SERIES: Joe Sangl’s Favorite Financial Tools – Early Pay-Off Calculator

Welcome to the latest series at JosephSangl.com – Joe Sangl’s Favorite Financial Tools

In this series, I will be sharing the tools that I love the most.   There are several reasons I love these tools, but mostly I like them because they literally helped me change my life!

Part TwoEarly Pay-Off Calculator

The early pay-off calculator is a HOPE-GENERATOR!   Do you want to get FIRED UP?   Do you want to see the answer to the question, “What if?”   Use the Early Pay-Off Calculator to answer the question!

I have found that the Early Pay-Off Calculator is most impactful when used to calculate how much more quickly a home mortgage would be paid off if one were to begin paying extra principal each month.

As example, consider a \$150,000 home mortgage financed for 30 years at 5% annual interest.   The principal and interest payment would be \$805/month.

• Pay just \$905/month (\$100 extra), the early pay-off calculator shows that the mortgage would be eliminated in 23.5 years (6.5 years sooner)
• Pay \$1,000/month (\$195 extra), the mortgage pay-off would occur in 19.7 years
• What if one were able to make two payments per month (\$1,610/month)?   Pay-off would occur in 9.8 years!

Don’t think it is possible to make two payments per month?   Think again!   Most people could make two, three, or even four payments per month if they eliminated all of their other debts!   I challenge you to pull up the Early Pay-Off Calculator, punch in your numbers and discover why this tool will be one of your favorites too!

TOOL:   Early Pay-Off Calculator

RESOURCE: My book, I Was Broke. Now I’m Not., is a great resource to help you attack debt and make it leave your life!

Read the entire series (available after 6/17/2011)