The **Amortization calculator** helps you estimate your client’s monthly loan payments and breaks down how much they’ll pay towards principal and interest over the course of the loan.

## Using the Amortization Calculator

- Enter the
**Loan Amount**,**Term**and the**Annual Interest Rate**. - You may also add:

- An
**Optional Additional Monthly Principal Payment**which would be paid towards the principal every month. **Optional Additional Lump-Sum Principal Payment**for a one-time payment towards the principal by filling out the fields below:- The
**Which Payment**field: this is the numbered payment your client would like to make the lump-sum payment on. - The
**Payment Amount**they would like to pay. - For
**Recast,**choose**Yes**or**No**.- Some mortgage lenders and servicers will allow you to recast (or reset) your monthly loan payment amount after making a principal lump sum payment. The reset will be based upon the original rate and term.

- Using the drop downs, select the
**Purchase Year**and**Purchase Month.**

- The

- An
- Click
**Calculate**.

An **amortization schedule** along with interactive charts and graphs will generate based on your inputs. Go to the next article to dive into what's inside the **Amortization Calculator's** results!

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