How this number is made
A payoff quote from a lender includes interest to a specific day and sometimes a fee. This page is the scheduled balance after whole payments, which is the figure those quotes start from.
- Use the original amount and the original term.
- Payments made are on-time full payments, with no extras and no skips.
Formula
Balance after k payments = P(1+r)^k − payment × ((1+r)^k − 1) ÷ r.
Worked example
With the figures already in the form, balance after those payments is $17,657.
Questions
Why is the lender’s payoff higher?
Payoffs add per-diem interest through the day they receive the money, and sometimes a recording or release fee. This page stops at the scheduled principal.
What if I paid extra?
Those extras are not in the count. Add them only if you know they reduced principal. The extra-payment page is the forward-looking version.