When dealing with loan amortization, mortgage and other financial term, there are some tools that can help us to make the whole calculation. One of them is amortization calculator created using Microsoft that you can download in this site. This calculator work simple enough, where it will calculate your monthly payment based on the loan amount, interest rate, and term. After that it will list your payment for each month, the balance, principal, interest, payment and total interest. With this, you can get rough calculation of where your money goes to every time you make payment and see how much more that you need to pay.
But, do you know that every time you make monthly payment, only small percentage from the amount that goes to pay the principal money where the rest goes to pay the interest. The situation will be like this until half of your payment period. It was a shock at first but actually it was pretty reasonable especially for the financial institution that loan you the money. They surely want to keep their financial situation safe just in case you can’t finish the payment. This is when this calculator can help you. You will be able to see how much money that you have pay for the principal and how much that goes to the interest. And you will also have some illustration how much principal left that you have to pay when you plan to pay your loan off. But, don’t be surprised if you still have to pay a big amount of money if you plan to settle it before half time of your loan period.
Sources : Exceltemplate.net
Amortization Calculator (38.3 KiB, 1,955 hits)