Amortization Calculator

Amortization is the process of repaying a loan over time through equal installments. To use an amortization calculator, input the loan amount, term, interest rate, and start date. This tool helps you create a personalized amortization schedule.

Key Details:

• Loan Amount: Enter the amount you borrowed.
• Loan Term: Specify the length of your loan, typically 30 or 15 years.
• Interest Rate: Input your mortgage interest rate.
• Loan Start Date: Enter the date when your first payment was made.

As you repay your loan, your payment covers both the principal (amount borrowed) and interest. Over time, more of your payment goes towards reducing the principal, with less going toward interest. Fixed-rate mortgages involve equal payments, but the portion going to principal and interest changes monthly.

A longer amortization period lowers your monthly payment but increases the total interest paid and slows down the growth of home equity. Amortization applies not only to mortgages but also to personal and auto loans.

Amortization Schedule:

This is a table showing each monthly payment, how much goes to principal, and how much goes to interest throughout the loan term.

Calculation Steps:

1. Input loan amount.
2. Input loan term.
3. Input interest rate.
4. Input start date.
5. Review the schedule to see changes in payments over time.

The calculator helps you determine:

• Current or future principal balances.
• The impact of extra payments on loan payoff.
• Total interest paid over the loan’s life.
• Your home equity.

To accelerate your mortgage payoff, consider biweekly payments, extra payments towards the principal, refinancing, or mortgage recasting. Each method has its advantages and costs, such as refinancing fees or recasting charges, which should be evaluated before proceeding.

Amortization Calculator