Amortizing Loan Calculator with Schedule

Understanding Loan Amortization

An amortizing loan is a type of loan where regular payments are made over time to cover both the principal amount borrowed and the interest accrued. Most common consumer loans, like mortgages and auto loans, are amortizing.

Here's the key concept:

• Consistent Payments: You typically make the same payment amount each period (e.g., monthly).
• Changing Allocation: While the total payment stays the same, the portion applied to interest versus principal changes with each payment.
  • Early Payments: A larger portion of your payment goes towards interest because the outstanding balance is high.
  • Later Payments: As the principal balance decreases, less interest accrues, so a larger portion of your payment goes towards paying down the principal.
• Full Payoff: By the end of the loan term, the entire principal balance and all accrued interest will be paid off if all payments are made as scheduled.

Why Use an Amortization Calculator?

This calculator helps you:

• Determine your fixed periodic (usually monthly) payment amount.
• See exactly how much interest you'll pay over the life of the loan.
• Visualize the breakdown of each payment into principal and interest through the amortization schedule.
• Track your loan progress and see how your outstanding balance reduces over time.
• Understand the impact of loan term and interest rate on your payments and total cost.

How to Use This Calculator

1. Enter the total Loan Amount you are borrowing.
2. Input the Annual Interest Rate for the loan.
3. Specify the Loan Term in Years.
4. Click the "Calculate & Generate Schedule" button.
5. The results will show a summary (Monthly Payment, Total Principal, Total Interest, Total Cost) and a detailed payment-by-payment amortization schedule below. You can scroll within the table to see the full schedule.

Disclaimer: This calculator provides estimates based on the information provided and standard amortization formulas. It assumes payments are made exactly as scheduled. Actual loan payments and total interest may differ due to factors like fees, insurance, taxes (for mortgages), lender rounding practices, or payment variations. Always refer to your official loan documents for exact figures.