The Math Behind Partial Payments

Let's say you borrowed some money at a specified percentage over a certain period of days for a specific amount of time. However, prior to the maturity date of your loan, you decide you want to make a lump sum payment. There are a couple of things you will want to know. What is the new adjusted balance that will be due at maturity and of course, how much interest will you save?  This article explains in easily understood terms just how to calculate the benefit of making partial payments. And, if you are a spreadsheet users, check out calculating loans tips from the spreadsheet guide.