Question 1

What is an amortization schedule?

Accepted Answer

An amortization schedule is a table showing each loan payment broken down into principal and interest, plus the remaining balance after each payment. It shows exactly how your loan is paid off over time.

Question 2

How is the monthly payment calculated?

Accepted Answer

The monthly payment uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the total number of payments.

Question 3

Can I see how extra payments affect my loan?

Accepted Answer

Yes. Enter an extra monthly payment amount and the schedule recalculates — you will see the loan paid off sooner and the total interest reduced.

Question 4

Does this work for mortgages, car loans and personal loans?

Accepted Answer

Yes. The calculator works for any fixed-rate installment loan — mortgages, auto loans, student loans and personal loans. Just enter the loan amount, annual rate and term.