# Amortization Calculator - Calculatorall.com

Our amortization calculator allows you to find out the amortization schedule on monthly basis for your fixed-interest loan. The calculator will also tell you what exactly you will have to pay each month and what would be your total interest amount at the end of loan term. So, before getting into any further details about this amortization calculator , let's first try to find out what amortization actually is.

 Loan Amount Loan Term years Interest Rate (APR) %

Amortization

Amortization is basically the debt repayment systematically. Here, the most important thing is "systematic". Loan amortization would mean paying it off in bits.

This usually translates into regular payments every month and it's exactly what we do for the mortgages. But when it comes to amortization, it refers to periodic payments over a period of time.

The best thing about amortization concept is that it tells you exactly how much you'll need to pay every month, under fixed rate of interest, so that the loan can be paid off completely at a particular time. All the payments can be reflected in the amortization table.

Amortizing Mortgage Loans

In case of mortgages, monthly payments are made to lender and these are amortization payments. Part of these payments actually cover interest amount, while the rest of payment reduces principal amount that you have to pay to the lender. The amount of interest is calculated on currently owed amount and, hence, it continues to get smaller with the decrease in principal amount. Interest payments are big to start with which means principal payments are less in the beginning. With the passage of time, the principal is reduced so much that there won't be much to be paid in interest and most of your payment is made to cover your principal amount.

You can use our amortization calculator to find out how it all works. Just look at amortization table that will be displayed and youâ€™ll have a clear idea of everything.

Credit Card Amortization

It's the process through which credit card consumers usually pay their credit card debts off. Mostly, the providers need you to pay some minimum amount against your debt every month, but the minimum payment you make can only cover the interest for most part. When amortization payments are planned against the credit card debt that you have to pay, you have to plan payments that are big enough for covering the interest amount due and also to pay off something towards principal. When it comes to credit cards, the interest is usually determined through APR that is compounded every month against principal amount that you still owe. Quite similar to mortgages, as the consumer pays more to credit card provider, principal amount comes down and due to this the interest becomes smaller with every payment.