Amortization Schedule Calculator
a financial tool used to compute the breakdown of payments on a loan over time. It provides details such as the monthly payment amount, how much of each payment goes toward the principal (the loan amount), and how much goes toward interest (the cost of borrowing). It also tracks the remaining balance after each payment.
Loan Summary
Monthly Payment: $0
Total Interest Paid: $0
Total Cost of Loan: $0
Payoff Date: N/A
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
What Is An Amortization Schedule?
An amortization schedule also helps borrowers see how their loan balance decreases over time and how much interest they’ll pay throughout the life of the loan.
By using an amortization calculator, you can:
- Calculate principal and interest paid in any particular payment.
- Calculate the total principal and interest paid on a particular date.
- Calculate how much principal is owed now or in the future.
How Do I Create A Loan Amortization Schedule?
Your loan amortization schedule outlines the monthly payment amount required to fully pay off your mortgage within the agreed loan term. The most important figure in building this schedule is your monthly mortgage payment.
To calculate your monthly payment, you’ll need to enter your current loan amount, mortgage term (in years), annual interest rate, and the state you live in into an amortization schedule calculator.
How To Use An Amortization Schedule Calculator
To use our amortization schedule calculator, you’ll need some basic information: your mortgage’s principal balance, annual interest rate, loan term, and the state where you live. You can also input extra payments to see how they impact the total length of your mortgage.
This calculator can help you find out:
Your current or future principal balance
How much extra you need to pay to shorten your loan term
The amount of equity you’ve built in your home
Amortization Calculator Results Explained
After entering all the required information into the amortization calculator, you’ll receive key results such as your monthly payment, total remaining loan balance, total principal paid, and total interest paid.
Here’s how the calculator works with your inputs:
Loan Amount: This is the outstanding principal you owe on your mortgage, excluding interest.
Interest Rate: The annual percentage charged on your loan, representing the cost of borrowing.
Loan Term: The length of time over which you’ll repay the mortgage.
Your monthly mortgage payment primarily covers interest at the beginning of the loan and gradually shifts to paying down more of the principal over time. Keep in mind that this payment amount doesn’t include other housing costs like property taxes, insurance, or utilities.
Total Remaining Balance: The amount you still owe on your mortgage.
Total Principal Paid: The portion of your original loan amount that you’ve already repaid.
Total Interest Paid: The accumulated cost of borrowing based on your interest rate and payment history.
How Many Years Will Come Off My Mortgage By Paying Extra?
To find out how much time you could shave off your mortgage, try entering a shorter loan term into the amortization schedule calculator. While this will increase your monthly payment, it could significantly reduce the total interest you pay over the life of the loan—provided the higher payment fits your budget. If it doesn’t, you might consider making additional principal payments instead.
For example, homeowners with 30-year mortgages typically pay far more in interest than those with 15-year loans, as shorter terms usually come with lower interest rates. By making just one extra principal payment each year, you could cut up to five years off a 30-year mortgage. Extra payments can be made using discretionary income, like a bonus or tax refund. If money is tight, you can pause those extra payments and resume them when your financial situation improves.
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Frequently asked questions
Mortgages are usually amortized. All Elite loan is the best company if you’re wondering how amortization works. Using the calculator and reading these FAQs can help.
An amortization calculator is used to estimate monthly payments for loans (such as mortgages, car loans, or personal loans) and to create an amortization schedule that shows how payments are divided between principal and interest over time.
You typically need the following:
- Loan Amount: The total amount borrowed.
- Annual Interest Rate: The yearly rate expressed as a percentage.
- Loan Term: The duration of the loan, usually in years.
An amortization schedule is a table that outlines each loan payment, showing:
- The amount applied to principal.
- The amount applied to interest.
- The remaining balance after each payment.
Amortization calculators are accurate for basic loan structures with fixed interest rates and regular payments. However, real-life factors like:
- Late payments,
- Variable interest rates,
- Additional fees, can make the actual payment structure differ slightly.
- Principal: The original amount of money borrowed.
- Interest: The cost of borrowing, calculated as a percentage of the remaining principal.
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