Amortization Calculator and Payment Amount

You can pay off your mortgage sooner with an extra payment. But how much?

Desk calculatorThis handy tool can be used to find out how long it will take to pay off a mortgage with an extra payment or a lump sum payment.

We all love amortization calculators, which allow us to quickly determine the remaining number of months on our loans. The article will review an amortization calculator that makes the calculation and displays the results much easier to understand than others. This calculator can help you determine how quickly you can pay off your mortgage, and even how to calculate the principal and interest paid each month as an additional payment.

The Amortization Calculator shows the difference between the original mortgage amount and current value with an extra monthly payment. It's a simple but effective tool for calculating the amount of time it would take to pay off a mortgage or other loan.

What Is Loan Amortization?

Loan amortization is the process of repaying a loan in installments. The payments are typically made on a monthly basis, and the amount of each payment goes toward both the principal balance and the interest. Loan amortization schedule is a table that shows the sequence of payments and how much of each payment is applied to principal and interest.

The term of a loan can be anywhere from a few months to 30 years. The longer the term, the lower the monthly payments will be. However, you will pay more interest over the life of the loan if you have a longer term.

Some loans, such as mortgage loans, allow for prepayment without penalty. This means that you can make extra payments on your loan in order to pay it off early. Making prepayments can save you money on interest charges.

How Do I Calculate the Amortization Schedule?

Loan amortization graphicThe calculator works by entering the loan amount, the interest rate, the years of the loan, the monthly payment, the extra payment and the start date.

Calculate Interest Payments

Calculating the total amount of interest is easy with the amortization calculator. Simply enter the details of your loan into the calculator, and you'll see the result in seconds. If you've made extra payments, you can also enter your extra payments, and it will show you how much you'll need to make each month to reach the end of the loan term.

Calculate Loan Payment

Our amortization calculator allows you to enter a value for the loan amount, the interest rate and the number of payments per year. It then determines the payment and total payment of the loan or mortgage and the amount paid toward principal. The calculator can be used for any kind of loan, such as a mortgage, personal loan or car loan.

Calculate Extra Payment

You may use this calculator to determine the monthly loan interest payment. You can see how long it would take to pay off the debt if you simply make the minimum payment each month as well as how much you could save if you made the minimum payment plus an additional $100 each month. You may also check how much the loan will cost you at any given moment using the amortization calculator. It breaks down the figures into a graph that illustrates how much the loan is costing you each month and how much you would have to pay off in one large payment.

Rotating question markFAQs About Our Amortization Calculator

Q. Do extra payments automatically go to principal?

A. Extra payments are usually applied to principal. (check with your lender to ensure that the extra payment is processed correctly).

Q. Regardless of when you pay your mortgage, does it really matter?

A. You should pay your mortgage on the 1st day of the month for no other reason than there could be a delay with the U.S. Postal Service.  

Q. Does paying an extra $100 a month on mortgage help?

A. Making an additional payment reduces the total interest paid to the lender.

Q. How do I make sure my extra payment goes to principal?

A. Call the lender.

Q. Is it true that reducing down principle reduces the amount of interest payable?

A. Increasing your mortgage payment does not result in a decrease in your monthly payment. The additional principle payment will lower your interest costs during the loan's term.

Read more questions and answers about conventional loans

Conclusion

In conclusion, using a loan calculator can help you pay off your home mortgage sooner. By inputting information about your loan, such as the principal, interest rate, and length of the loan, you can see how much you could save by making extra payments. You can also use a loan calculator to see how a refinance could benefit you. So, if you're looking for ways to pay off your home mortgage sooner, be sure to check out a loan calculator.

Recommended Reading

  1. Calculate your per diem interest with this handy calculator! 
  2. Can I Get a Conventional Loan for a Second Home?
  3. Can You Get a Conventional Loan for an Investment Property?