Use the following calculator to estimate and plan your loan or mortgage payment journey with the amortization schedule:
Payment (Amortization) Schedule
How to use this Loan (Mortgage) Payment Calculator with Amortization Schedule
To use this calculator,
- Choose the Loan Payment Plan. It can be monthly, quarterly, semi-annually, or annually.
- Enter the value of the Loan (or mortgage) amount
- Enter the appropriate Loan (or mortgage) term in years. If you are going to pay the whole loan in 30 years, put 30 in the box.
- Enter the annual Interest Rate for the loan (without % sign)
- Press calculate and see the value of Payment Per Period, Total Payment, and Total Interest along with the Amortization Schedule.
What is a loan?
A loan is a sum of money that is borrowed from a lender, typically a bank or financial institution, with the understanding that it will be paid back over time. When someone needs money for various reasons, such as buying a house, starting a business, or paying for education, they can apply for a loan. The lender assesses the borrower’s financial situation and determines whether they are eligible for the loan. If approved, the borrower receives the requested amount and agrees to repay it in regular installments, which include both the principal amount borrowed and an additional fee called interest. The interest is the cost of borrowing and is calculated as a percentage of the loan amount.
Loans can have different terms and conditions, including the length of time to repay, the interest rate, and any collateral required. It’s important to understand the terms of a loan and make payments on time to avoid any negative consequences.
A mortgage is a loan used to purchase a home or property. When someone wants to buy a house but doesn’t have enough money to pay for it all at once, they can apply for a mortgage from a bank or lender. The lender assesses the borrower’s financial situation, including their income, credit history, and the value of the property, to determine if they qualify for the loan. If approved, the borrower receives the loan amount, which is typically a percentage of the property’s value, and agrees to make regular payments over a set period of time, usually 15 or 30 years.
These payments consist of both the principal amount borrowed and interest. The property itself serves as collateral for the loan, which means that if the borrower fails to make payments, the lender has the right to take possession of the property.
Once the mortgage is fully paid off, the borrower becomes the owner of the property. It’s important to carefully consider the terms and conditions of a mortgage and ensure that the payments fit within one’s budget.
What is an amortization schedule?
An amortization schedule is a table or chart that provides a detailed breakdown of each payment made towards a loan over its repayment period. It shows how each payment is allocated between the principal amount borrowed and the interest charged by the lender.
The schedule typically includes information such as the payment date, payment amount, interest portion, principal portion, and the remaining balance of the loan after each payment. Initially, a larger portion of the payment goes towards paying off the interest, while a smaller portion is applied towards the principal. As the loan progresses, the proportion shifts, and more of the payment is applied to reducing the principal amount.
An amortization schedule helps borrowers understand how their loan balance decreases over time and provides a clear timeline for the complete repayment of the loan. It also enables borrowers to see the impact of additional payments or adjustments in the loan term on their overall repayment plan.
In conclusion, a loan (mortgage) payment calculator with an amortization schedule is a valuable tool for borrowers. It helps individuals estimate and plan their loan repayment journey by providing a clear breakdown of each payment, including the principal and interest components. This calculator allows borrowers to visualize how their loan balance will decrease over time and provides insights into the impact of additional payments or adjustments in the loan term. By using this calculator, borrowers can make informed decisions, manage their finances effectively, and stay on track with their repayment goals.