How It Works
- Original loan amount and current remaining balance
- Interest rates (supports fixed and variable rate periods)
- Monthly payment amounts from your debt parameters
- Loan start date and total loan term
- Optional one-time or recurring extra payments
- Detection of past extra payments from balance history
Key Assumptions
- 1Monthly payments continue at the current level
- 2Interest rates remain as configured (initial rate during fixed period, subsequent rate after)
- 3Extra payments are applied directly to principal reduction
- 4No fees, penalties, or payment holidays are modeled
- 5Each debt is calculated independently using its own currency
Mathematical Approach
The prediction builds a full amortization timetable. Each month: Interest = Remaining Principal × (Annual Rate / 12) Principal Payment = Monthly Payment − Interest New Balance = Remaining Principal − Principal Payment − Extra Payment For variable-rate loans, the interest rate switches from the initial rate to the subsequent rate after the fixed-rate period ends. The simulation continues until the remaining balance reaches zero.
Important Limitations
- Variable rates beyond the two configured periods are not modeled
- Payment holidays or restructuring not considered
- Fees and penalties not included
- Assumes payments are made on time each month
- Results are in the debt's original currency
Important: This prediction uses your actual loan parameters and payment schedules. Results are highly accurate for fixed-rate debts but may vary for variable-rate loans if interest rates change significantly from current levels.
Frequently Asked Questions
How does Wealth Path calculate my debt payoff date?
It builds a full amortization schedule from your actual loan parameters: each month, interest accrues on the remaining principal at the annual rate divided by 12, your payment covers the interest first, and the rest — plus any extra payment — reduces principal. The payoff date is the month the balance hits zero.
Can I see the effect of extra payments?
Yes. You can add one-time or recurring extra payments and see how they pull the payoff date forward, and the app also auto-detects past extra payments by comparing your logged balances against the paper schedule.
Does it support variable-rate loans?
Yes — you can configure an initial fixed rate and a subsequent rate that takes over after the fixed period ends.
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The information and calculations provided are for informational and educational purposes only and should not be considered financial, investment, or professional advice. Projections are hypothetical, based on assumptions that may not reflect actual market conditions. Past performance does not guarantee future results, and all investments carry risk of loss. Consult a qualified financial professional before making financial decisions.