Amortization Calculator: Installment Schedule & Debt Repayment
View your loan payment breakdown table month by month. Understand how much of your installment goes toward the principal vs. interest payments.
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Fill in the required parameters on the left and click calculate to see the detailed results and analysis.
Understanding Debt Payment Structure with an Amortization Schedule
When you take out a bank loan, you are not only paying back the money you borrowed but also the cost for using that money (interest). Amortization is an accounting process used to gradually pay off a debt balance through fixed payments over time. Our Amortization Calculator helps you transparently see how every dollar you pay is allocated.
Why Should You Look at an Amortization Table?
Many people are surprised to see that at the beginning of the loan term, most of their installments are spent just on paying interest, while the principal debt barely decreases. With an amortization table, you can:
Components in an Amortization Table
The generated table usually consists of several important columns:
Interest Systems: Annuity vs. Effective
Most long-term loans use an Annuity Interest system.
Strategies to Save on Loan Interest
If your bank allows voluntary additional payments, you can perform "Self-Amortization." By setting aside more money to pay down the principal, your debt balance will drop faster. Since interest is calculated based on the remaining principal balance, the total future interest burden will also drop significantly.
How to Use This Calculator
Enter the loan principal amount, the interest rate given by the bank, and the loan duration. You will get a complete breakdown table from the first month until it's paid off. Use this data to ensure you have a sufficient budget and there are no calculation errors from the creditor.
? Frequently Asked Questions
Q Why is my principal payment so small in the early years?
This is a characteristic of the annuity interest system commonly used by banks. Since interest is calculated as a percentage of the total remaining debt, and the debt is largest at the start, the interest portion dominates your installment.
Q What is the difference between amortization and depreciation?
Amortization is used for the repayment of intangible assets or debt (like loans), while depreciation is used to allocate the cost of tangible fixed assets (like vehicles or machinery) over their useful life.
Q Does the amortization schedule change if floating interest rates rise?
Yes. If your mortgage interest rate rises during a floating period, the interest proportion will increase. Banks usually increase the monthly installment value or extend the term so the debt can be paid according to the new schedule.
Q Can I request an amortization table from the bank?
Certainly. Every customer has the right to get an official schedule when the loan agreement is signed or can request it through the bank's customer service.
Q Are provision fees included in the amortization table?
Usually not. Provision fees, administration fees, and insurance are generally paid once upfront and are not part of the monthly installment structure.