Mortgage Amortization Calculator

What is mortgage amortization calculator?

A mortgage amortization calculator is a helpful tool for homeowners or potential home buyers to determine their monthly mortgage payments and the amount of interest they will pay over the life of their loan. By inputting key information such as loan amount, interest rate, and term length, the calculator creates an amortization schedule that outlines how the loan will be paid off over time.

What are the types of mortgage amortization calculator?

There are several types of mortgage amortization calculators available to users. Some commonly used types include: 1. Basic Mortgage Amortization Calculator: This type of calculator provides the essential functions for calculating monthly payments and interest paid over time. 2. Advanced Mortgage Amortization Calculator: These calculators offer more detailed features, such as the ability to factor in additional payments, extra principal payments, or changes in interest rates. 3. Bi-Weekly Mortgage Amortization Calculator: These calculators help users determine the impact of making bi-weekly payments instead of monthly payments.

Basic Mortgage Amortization Calculator
Advanced Mortgage Amortization Calculator
Bi-Weekly Mortgage Amortization Calculator

How to complete mortgage amortization calculator

Completing a mortgage amortization calculator is simple and straightforward. Here are the steps: 1. Enter the loan amount: Input the total amount of the loan you are considering or have already obtained. 2. Specify the interest rate: Enter the annual interest rate that applies to your loan. 3. Choose the loan term: Select the length of time over which you plan to repay the loan. 4. Review the details: Verify that all the entered information is accurate. 5. Calculate the results: Click the calculate button to generate the amortization schedule and see the monthly payments and total interest.

01
Enter the loan amount
02
Specify the interest rate
03
Choose the loan term
04
Review the details
05
Calculate the results

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Video Tutorial How to Fill Out mortgage amortization calculator

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Questions & answers

To calculate amortization, start by dividing the loan's interest rate by 12 to find the monthly interest rate. Then, multiply the monthly interest rate by the principal amount to find the first month's interest. Next, subtract the first month's interest from the monthly payment to find the principal payment amount.
Starting in month one, take the total amount of the loan and multiply it by the interest rate on the loan. Then for a loan with monthly repayments, divide the result by 12 to get your monthly interest. Subtract the interest from the total monthly payment, and the remaining amount is what goes toward principal.
An amortization calculator is used to determine the periodic payment amount due on a loan (typically a mortgage), based on the amortization process. The amortization repayment model factors varying amounts of both interest and principal into every installment, though the total amount of each payment is the same.
How to make a loan amortization schedule with extra payments in Excel Define input cells. As usual, begin with setting up the input cells. Calculate a scheduled payment. Set up the amortization table. Build formulas for amortization schedule with extra payments. Hide extra periods. Make a loan summary.
How to Calculate Amortization of Loans. You'll need to divide your annual interest rate by 12. For example, if your annual interest rate is 3%, then your monthly interest rate will be 0.25% (0.03 annual interest rate ÷ 12 months). You'll also multiply the number of years in your loan term by 12.
You can build your own amortization schedule and include an extra payment each year to see how much that will affect the amount of time it takes to pay off the loan and lower the interest charges.