The process of paying off a loan or price of an asset in regular, gradual and scheduled payments over a time is called amortization. It usually consists of three parts that are loan or Principal amount, loan term and interest rate. Principal amount is the total loan that you obtain. Loan term is the period during which you have to repay the obtained loan and interest rate is the percentage of the loan amount that you have to pay alongwith original loan amount. Eah payment reduces the remaining loan amount as well as monthly payment.
Amortization calculator is a financial tool that is used to estimate monthly or annual repayment schedule of your total borrowed amount. It covers the amount paid in Principal and interest and also generates amortization table based on monthly schedule and annual schedule.
Its working is pretty simple. You just need to enter total borrowed amount, loan term and interest rate and click on calculate button to see the results. The results are generated in numbers and charts for clear understanding. It also provides option to calculate extra payments, monthly, annualy or one time. Annual and monthly amortization tables are also generated based on the provided values. You can toggle between these two amortization schedule tables by clicking or pressing on the tabs given above the tables.
Feel free to contact us in case of any confusion or suggestion.