Amortization is the process of spreading out a loan into a series of fixed payments. Amortization Schedule also called as Amortization Table that lists each regular payment on a mortgage over time. Use our Loan Amortization calculator to calculate the amount you need to pay per month based on the Loan Amount, Annual Interest Rate, Total Period (Loan Tenure).
The loan calculator helps you instantly calculate your pay-outs and, therefore, plan your loan and repayment better. To calculate your EMI, just enter the loan amount, rate of interest and loan tenure, and your EMI is instantly displayed.
EMI stands for Equated Monthly Installment. It includes repayment of the principal amount and payment of the interest on the outstanding amount of your loan.
How to Use Amortization Calculator?
With colourful charts and instant results, our Amortization Calculator is easy to use, intuitive to understand and is quick to perform.
- Principal loan amount you wish to avail
- Rate of interest (percentage)
- Loan tenure in years
A pie chart depicting the break-up of total payment (i.e., total principal vs. total interest payable) is also displayed. It displays the percentage of total interest versus principal amount in the sum total of all payments made against the loan.
Types of Amortizing Loans
There are numerous types of loans available, and they don’t all work the same way. Installment loans are amortized and you pay the balance down to zero over time with level payments. They include:
- Auto loans: These are often five-year (or shorter) amortized loans that you pay down with a fixed monthly payment. Longer loans are available, but you'll spend more on interest and risk being upside-down on your loan, meaning your loan exceeds your car's resale value if you stretch things out too long to get a lower payment. Check our auto loan calculator
- Home loans: These are often 15-year or 30-year fixed-rate mortgages, which have a fixed amortization schedule, but there are also adjustable-rate mortgages (ARMs). With ARMs, the lender can adjust the rate on a predetermined schedule, which would impact your amortization schedule. Most people don’t keep the same home loan for 15 or 30 years–they sell the home or refinance the loan at some point–but these loans work as if you were going to keep them for the entire term. Check our home loan calculator
- Personal loans: These loans, which you can get from a bank, credit union, or online lender, are generally amortized loans as well. They often have three-year terms, fixed interest rates, and fixed monthly payments. They are often used for small projects or debt consolidation. Check our personal loan calculator