How this works — just like your credit card company
Total Owed — your current balance (check your statement).
Min Payment — the minimum your lender requires each month.
APR % — your annual interest rate (check your statement).
Interest is calculated daily — just like credit card companies do it. Your daily rate = APR / 365, and interest compounds (you pay interest on interest).
When you enter payments on the budget sheet under "Amt Paid", we calculate:
• How much of your payment went to principal (reducing your balance)
• How much went to interest (profit for the lender)
Paying more than the minimum reduces your principal faster, which lowers the total interest you pay over the life of the loan. Run the numbers on your own balance to see how much that adds up — the savings can be significant on high-rate debt.