Enter the Annual Interest Rate (in percent) in the next field. For example, 8.0 is entered for an 8.0% bank interest rate.

Next the Term (in years) is entered into the last field. For example, 10.5 is entered for a 126 month amortization.

Enter the Interest Compounding frequency (number of times per year). Typically mortgages wil compound twice a year while demand loans compound each month (12 times per year).

Select the Payment Frequency you wish to use from the pop-up menu.

Click on the Compute button to obtain an amortization schedule. If any incorrect data has been entered, an error message will be returned to you providing details about the error, otherwise the amortization schedule will be returned to your browser after a few seconds. For this example ($10,000.00 principle, 8.0 percent interest, 10.5 year term, 2/year compounding, monthly payments), the computed payment is $116.87/month for 126 months.

Additional Payments to Principle

• You may make Periodic Payments by entering the amount for each payment, into the first input field, and the frequency of these payments into the second input field.

  Using the example from above where the computed payment is $116.87/month for 126 months, I wish to pay $150.00 per week to pay the loan off sooner. So I would enter $33.13 ($150.00-$116.87) into the first Periodic Payment input field and 1 into the second field. The term of the loan is shortened from 126 months to 88 months.

• You may also make a One-time Payment to principle by entering the amount of the payment, into the first input field, and the period when the payment is applied into the second input field.

  Using the example from above, I want to pay $2,000.00 at the end of the first year. This is done by entering 2000.00 into the first One-time Payment input field and 12 into the second field. The term of the loan is shortened from 126 months to 94 months.

• You may also apply both Periodic Payments AND a One-time Payment into the same amortization schedule simply by enetering the information into both sets of fields. For example, paying an additional $33.13 per week AND making a one-time payment of $2000.00 at the end of the first year shortens the term to 68 payments.