Financial Terms / loan amortization schedule

# Calculate Mortgage Payment with Amortization Schedule

The amortization schedule calculator is an essential tool for calculating monthly mortgage payments, principal and interest payments, total principal and interest payments over a certain period of time, and how much principal one owes on a mortgage at a certain date.

## Formula

Total Payment = Principal Amount x (Interest Rate / 12) x (1 + Interest Rate / 12)Term in Months / ((1 + Interest Rate / 12)Term in Months - 1)

## How do I calculate the loan amortization schedule?

An amortization schedule calculator is an important tool for managing loan payments. It helps to calculate the amount of principal and interest paid in each payment, the total principal and interest paid over the life of the loan, and the amount of principal owed on the loan at a specified date. To calculate the loan amortization schedule, one needs to take the loan amount, the interest rate, and the loan term, and use the formula:

Total Payment = Principal Amount x (Interest Rate / 12) x (1 + Interest Rate / 12)Term in Months / ((1 + Interest Rate / 12)Term in Months - 1)

The loan amortization schedule can be calculated manually or with the help of a spreadsheet program such as Sourcetable.

## What is an amortization schedule?

An amortization schedule is a table that details how a loan is paid off over a certain period of time. It includes the principal and interest payments, as well as the total amount of the loan.

## How does an amortization schedule calculate the monthly principal due?

The amortization schedule will calculate the monthly principal due by taking the total loan amount and dividing it by the number of months in the loan term. For example, if you have a loan of \$10,000 with a 12-month term, the monthly principal due would be \$833.33.

## How is the amortization schedule used to calculate the total payment?

The amortization schedule is used to calculate the total payment by taking the monthly principal due and adding it to the interest payment. The total payment is then multiplied by the number of months in the loan term to get the total payment.

## How is the amortization schedule used to calculate the beginning loan balance?

The amortization schedule is used to calculate the beginning loan balance by subtracting the monthly principal payment from the total loan amount. This will give you the beginning loan balance for each month of the loan. The formula for calculating the beginning loan balance is Begin Loan Balance = Total Loan Amount - Monthly Principal Payment.

## Key Points

How do I calculate loan amortization schedule?
Total Payment = Principal Amount x (Interest Rate / 12) x (1 + Interest Rate / 12)Term in Months / ((1 + Interest Rate / 12)Term in Months - 1)
Periodic Loan Payments
An amortization schedule shows periodic loan payments for loans with a level payment. The payments are typically monthly.
Interest vs Principal
The amortization schedule shows how much of each payment is designated for interest versus the principal on a loan.
Installment Loans
Loan amortization schedules are often used with installment loans, allowing borrowers to track what they owe and when payment is due.