- What is Amortization Calculator?
is a compound interest calculator. Amortization Calculator will calculate your
monthly payment and then return an amortization schedule giving Period, Total Payment,
Payment to Interest, Payment to Principle, and Balance; and a chart showing how much of each payment goes to principle and how much to interest.
- How do I use Amortization Calculator?
Enter the Principle amount into the appropriate field. For example,
100000.00 is $100,000.00. Pressing the Tab key will move you to
the next field.
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
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.
- Nuts and Bolts information about
Amortization Calculator Version 3.1
NEW - Chart plotting payments to principle and interest for the loan term. See the efffects of one-time payments and anniversary payments on the term and the total interest paid.
Amortization Calculator is copyright 1985-2017 by Black Pearl Computing Ltd. Please see our disclaimer here.
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©1997-2017 Black Pearl Computing Ltd.
Prepared: 9/11/97 Last Updated 10/06/2017