How EquityFlow Calculates Results

Transparency about our formulas, data sources, and limitations.

📐 Formula

Monthly savings = (extra payment × (1 + rate/12)^remaining_months - extra payment). Uses standard amortization: M = P × [r(1+r)^n]/[(1+r)^n-1] where r = annual rate / 12, n = months remaining.

📊 Data Sources

Federal Reserve statistical releases (current mortgage rates); Fannie Mae amortization standards; Consumer Financial Protection Bureau prepayment guidelines.

⚠️ Limitations

Assumes fixed-rate mortgage with no prepayment penalty. Does not reflect ARM adjustments, escrow changes, or tax implications. For financial advice, consult a licensed professional.

🕐 Last Reviewed

June 2026. Methodology is reviewed quarterly and updated when underlying data sources or industry standards change.

🚫 Disclaimer

This tool provides estimates for informational purposes only. Results are not financial, legal, or professional advice. Always consult qualified professionals and obtain multiple quotes before making decisions based on these estimates.