Only if you have a loan or are considering taking one out. Your remaining Loan Balance will be adjusted accordingly - and you'll save yourself some money in interest.ĭo I need a loan amortization calculator? Note that towards the beginning of your loan, more of your money may be paying for interest rather than the principal itself.Įxtra Payments may be made towards the principal, and then entered in the Extra Payment column on the appropriate date. A summary can be found to the right, and below you will find a full schedule of the dates and amounts of each payment, broken down into the amounts going towards Interest and Principal. Once you have filled in all of this information, the loan amortization calculator will calculate your payments over the full term of your loan. If for some reason you do not wish to round to the nearest cent, you may disable this feature. Rounding is enabled by default to round all values to the nearest cent, which most lenders will also do. By default, this is set to automatically update to match your payment frequency, so you only need to change it manually if the two are different. Select this from the drop-down menu (monthly is common).Ĭompound Frequency is how often the interest is compounded. Payment Frequency is how often you plan to make payments. If you are calculating an existing loan, enter the date of your next payment. Decimals may be used as long as they divide evenly into your payment frequency.įirst Payment Date is the date on which you will make the first payment on the loan. If you are calculating a loan that is already partially paid off, enter the remaining time on the loan. Term is the number of years, starting from today, over which you plan to pay back the loan. If you're calculating a loan that is already partially paid off, enter the remaining balance of your loan.Īnnual Interest Rate, aka Annual Percentage Rate (APR), is the interest rate designated by the lender. Loan Amount is the entire principal of the loan. This represents the new debt balance owed based on the payment made for the new period.Fill in the blue-bordered cells at the top of the spreadsheet with the terms of your loan: The ending loan balance is the difference between the beginning loan balance and the principal portion.As the outstanding loan balance decreases over time, less interest will be charged, so the value of this column should increase over time. This is the total payment amount less the amount of interest expense for this period. The principal portion is simply the left over amount of the payment. As the outstanding loan balance decreases over time, less interest should be charged each period. Always be mindful of how a lender calculates, applies, and compounds your annual percentage rate as this impacts your schedule. For example, if a payment is owed monthly, this interest rate may be calculated as 1/12 of the interest rate multiplied by the beginning balance. This is often calculated as the outstanding loan balance multiplied by the interest rate attributable to this period's portion of the rate. The interest portion is the amount of the payment that gets applied as interest expense.Though you usually calculate the payment amount before calculating interest and principal, payment is equal to the sum of principal and interest. This will often remain constant over the term of the loan. The payment is the monthly obligation calculated above.This amount is either the original amount of the loan or the amount carried over from the prior month (last month's ending loan balance equals this month's beginning loan balance). The beginning loan balance is the amount of debt owed at the beginning of the period.This may either be shown as a payment number (i.e., Payment 1, Payment 2, etc.) or a date (i.e. This column helps a borrower and lender understand which payments will be broken down in what ways. However, each row on an amortization represents a payment so if a loan is due bi-weekly or quarterly, the period will be the same. The period is the timing of each loan payment, often represented on a monthly basis.
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