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.
- An 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.
- 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!