Early Settlement Calculator

Calculate Early Settlement Amount





Formula

The formula to calculate the Early Settlement Amount (ES) is:

\[ ES = P - (P \cdot \left( \frac{n - t}{n} \right)) \]

Where:

Definitions

Example

Let's say the principal loan amount (P) is $10,000, the total number of monthly payments (n) is 24, and the number of payments already made (t) is 6. Using the formula:

\[ ES = 10000 - (10000 \cdot \left( \frac{24 - 6}{24} \right)) \]

We get:

\[ ES = 10000 - (10000 \cdot 0.75) = 10000 - 7500 = 2500 \]

So, the early settlement amount is $2,500.

Extended information about "Early-Settlement-Calculator"

Loan Early Settlement Calculator

Formula: \( \text{Settlement Amount} = \text{Outstanding Principal} + \text{Early Settlement Fee} \)

Example: \( \text{Settlement Amount} = 50,000 + 500 \)

How to Calculate Settlement Date

Formula: \( \text{Settlement Date} = \text{Loan Start Date} + \text{Loan Term} \)

Example: \( \text{Settlement Date} = \text{January 1, 2020} + \text{5 years} \)

Consumer Credit Early Settlement Calculator

Formula: \( \text{Settlement Amount} = \text{Outstanding Principal} + \text{Accrued Interest} + \text{Early Settlement Fee} \)

Example: \( \text{Settlement Amount} = 10,000 + 200 + 50 \)