📊 Amortization Calculator
🔹What is an Amortization Calculator?
An Amortization Calculator helps you break down your loan payments into a monthly repayment schedule. It shows how much of each payment goes toward the principal and how much covers the interest.
🔹How to Use This Calculator
- Enter the loan amount (total money borrowed).
- Input the interest rate (annual).
- Enter the loan term (in months or years).
- Click “Generate Schedule” to view your monthly payment breakdown.
🔹Why Use It?
- Plan your finances better.
- See how much interest you’ll pay.
- Understand how your loan balance reduces over time.
🔹Key Features
- Monthly amortization table
- Total interest & principal breakdown
- Reset.
FAQs
What is an Amortization Calculator?
An amortization calculator helps you understand how your loan repayments are distributed over time. It shows the breakdown of each monthly payment into interest and principal components, and how your loan balance decreases over the term.
What types of loans can I use this calculator for?
This calculator can be used for:
a. Personal loans
b. Home loans
c. Auto loans
d. Education loans
e. Loan against property
Is this calculator useful for business loans?
Yes, as long as the business loan is amortized (i.e., paid back in regular installments), the calculator can be used to plan payments and assess affordability.
How often should I recalculate amortization?
You should recalculate if:
a. The interest rate changes (for adjustable-rate loans)
b. You make extra payments
c. You refinance or change loan terms
How accurate is the amortization schedule from this calculator?
It’s highly accurate for fixed-rate loans. For variable interest loans, the schedule might change as rates change.
What happens if I make extra payments?
Extra payments reduce your principal faster, which lowers the total interest paid and shortens the loan term. However, this calculator assumes standard payments only.
Can this calculator handle bi-weekly or irregular payments?
No, it is designed for standard monthly payments only.
What’s the difference between interest-first loans and amortized loans?
In amortized loans, you pay both principal and interest each month. In interest-only loans, you only pay interest for a period, and the principal is repaid later.