Loan amortization schedule
Or are you looking for an amortization calculator which is easy to use yet provides you with tons of details including the ability to set the original loan date followed independently by the payment start date?
Steps for a Quick Payment Schedule
- Create printable amortization schedules with due dates
- Calculate loan payment amount or other unknowns
- Supports 9 types of amortization.
- User can set loan date and first payment due date independently.
- Leave all inputs and setting set to their defaults
- Enter the “Loan Amount”
- Enter expected “Number of Payments”
- Enter the “Annual Interest Rate”
- Set “Payment Amount” to “0” (the unknown)
- Click either “Calc” or “Print Preview” for your schedule
Updated for 2019
- Improved: chart’s color scheme
- New: save the custom URL to later repeat the calculation or to share with others
Click, copy, paste this URL to save the inputs for yourself or to share with others.
Related: Need even more flexibility? Need to create an adjustable rate loan or mortgage (ARM)? Need to enter regular or irregular extra payments? Need to amortize a construction loan? Then use this financial calculator. Users can enter multiple loan advances and adjust payment amounts and interest rates on any date.
What is amortization?
Quickly Select a Date
According to Wikipedia “Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance.”
- Normal Amortization
- Rule-of-78s Payment Table
- Interest Only Payment Schedules
- No Interest Loan Schedules
- Fixed Principal Amortization
- Canadian Loan Schedule
- Amortization with Points & Annual Percentage Rate (APR)
- Loan Schedule with Final Balloon Payment
- Negative Amortization
You’ll find each method discussed below.
About Dates, First Period Interest & Year-End Totals
Important Note About Dates: This calculator supports variable length first periods. That is, the calculator calculates the exact amount of interest due even when the initial period is shorter or longer than the other scheduled periods. Supporting odd length first periods results in more accurate calculations, but you’ll see interest charges that do not match other calculators. If you want to match other calculators, then set the “Loan Date” and “1st Payment Date” so that they equal one full period as selected in “Payment Frequency.” Example: If the “Loan Date” is May 15th and the “Payment Frequency” is “Monthly,” then the “1st Payment Date” should be set to June 15th, that is IF you want a conventional interest calculation.
Long first period
A long first period occurs when the period between the loan date and the first payment date is longer than the selected payment frequency. The calculator can calculate the interest due for these extra or odd days in one of four ways.
- None – free money! No interest calculated on the odd days
- With first – odd day interest paid with first payment due. Payment will be larger than the other periodic payments.
- With origination – odd day interest is due when the loan originates – commonly known as “prepaid interest”
- Amortized – a small amount of odd day interest is paid with each payment. The calculator increases all payments to be equal.
Short first period
A short first period occurs when the period between the loan date and the first payment date is shorter than the selected payment frequency. The calculator can calculate the interest due for the short period in one of three ways.
- No payment reduction – the calculator calculates what is considered to be a “normal” normal payment amount and uses it for the first payment. The last loan payment is reduced to compensate for the short period
- Reduce first – the first payment is reduced to compensate for the short period
- Reduce all – all payments are reduced to compensate for the short period.
Fig.3 – Initial short period – first payment reduced
One more comment about dates.
By default, the schedule’s totals are calculated as of December 31.
But some taxpayers pay taxes based on a different year-end. This calculator supports annual and cumulative totals as of any month end.
Click the “Settings” button and select “Year End Month.”
Fig.4 – Select the month for year end totals
9 Types of Loan Amortization Schedules
Normal Loan Amortization
- They have “level payments” i.e., the scheduled periodic payment amount does not change. (With the possible allowance, as discussed above, for odd day interest.)
- The interest amount paid declines each period as the loan balance is being paid down.
- Thus, the principal amount paid each period increases to keep the payment amount level.
- There may be a slight adjustment (“rounding”) of the final payment so that the loan is brought to a 0 balance.
Rule-of-78s Payment Schedule
Interest Only Amortization
- The periodic payment amount generally does not change.
- The interest amount paid each period is the same because no principal is paid, the loan balance does not change.
- The entire principal balance plus the last period’s interest is due with the last payment.
Many bonds sold to investors are interest only loans. The bond’s buyers are lending the issuer money. The bonds pay the buyer a periodic coupon payment which is the interest on the debt. And as reported by Zacks the size of the bond debt in the US at “the end of 2017 was more than $40.7 trillion”
If you represent a bond issuer, you can prepare a bond coupon payment schedule with this amortization calculator. The “loan date” is the bond’s issuance date and the “first payment date” is the date of the first coupon payment. Make sure to select the “Interest Only” amortization method.
No Interest Loan Amortization
Yes, it happens! I added this amortization method to the Windows version of this calculator 20 or more years ago. Someone called me (remember phone calls?) and said he and his wife were lending money to their son and they wanted to create a payment schedule that they could agree to, the catch was, there would be no interest charged.
The answer is simple. If a user enters a “0” for any input, then the calculator interprets that as the unknown value. So if a user enters a “0” for the interest rate, the calculator will attempt to calculate the rate.
Fixed Principal Loan Table
Determining the payment amount requires only simple arithmetic. To calculate the payment due, first, divide the principal loan amount by the number of payments in the term and then add the periodic interest.
- Payment amount start higher than a “normal” loan.
- The loans feature a declining payment amount. As the borrower pays down the principal balance, the interest due each period is reduced and therefore the payment decreases over time.
- The principal amount paid each period is fixed. The principal paid on a $1,200 loan with a term of one year will always be $100.
- The borrower pays less total interest
- There may be a slight adjustment (“rounding”) of the final payment so that the loan is brought to a 0 balance.
Canadian Amortization Schedule
The Canadian amortization method is the same as the “normal amortization method” except for one detail. When the user selects the Canadian method, the calculator automatically sets the payment frequency to monthly and the compounding frequency to semiannual.
The Canadian method, because it uses less frequent interest compounding, results in a slightly lower scheduled payment amount because the interest due is somewhat less each period when compared to the interest charges owed under monthly compounding.
Amortization with a Balloon Payment
Loan Schedule with Points, Fees and APR Support
Some loans require the borrower to pay an upfront charge called “points.”
Why would a borrower be willing to pay an extra charge?
When the borrower pays points, the lender reduces the interest rate. Points are in essence prepaid interest (and the IRS treats them that way). One point is one percent of the loan amount. Thus, one point on a $300,000 is equal to $3,000.
If “Include dollar value of points in interest charges” is checked then the calculator calculates the dollar cost of the points, and the payment schedule shows them paid at the loan origination. The calculator also adds the cost of points to the total interest charges.
Points impact the loan’s annual percentage rate. If you want to check the APR (and if you are the borrower, you should), you can include a Truth-in-Lending Act compliant calculation in the schedule’s footer. Just check the option “Include Regulation “Z” APR Disclosure calculation at the end of the schedule?”. For an accurate APR, don’t forget to include any fees in “Other charges & fees (for APR calculation)?” input.
Related: If you have any questions about APR calculations and what fees to include or exclude, see this site’s APR Calculator and Disclosure Statement. This calculator calculates APR and creates a printable disclosure statement.
Negative Amortization Calculation
That’s fine, of course. But all borrowers should also understand, there is no such thing as a “correct payment amount.” The only payment amount of concern is the amount agreed to between the lender and borrower. All things being equal if the lender says the payment is $315 a month and the borrower expects it to be $311 a month, it doesn’t matter – as long as they both agree on the initial period’s calculated interest amount. If the parties agree on the interest calculation, then paying a slightly higher amount will pay the loan off marginally faster or result in a smaller final payment, and the total collected as interest will be slightly less.
Note the negative principal amounts in the below figure.
Need an Amortization Schedule in MS Excel ® ?
You can copy/paste from either the main window or from the print preview window. If you copy from the main window, then formatting will remain intact. If you copy from the print preview window, then only the values will be copied. Depending on the browser you are using, you may have to use Excel’s Paste Special feature and select “Text” for copy/paste to work.
Save Payment Schedule to PDF
If you are using Google’s Chrome browser, printing to PDF is a standard feature. Click on Chrome’s menu (the 3 verticle dots) and select “Print. ” Click on the “Change. ” button and select “Save as PDF.”
If you are not using a browser that supports printing to a PDF, no problem. You can install a PDF print driver. It pretty easy to do this. And there are many free ones from which to pick. In the past, I used PrimoPDF.
Make sure, when saving to PDF that you use the “Print” button on the “Print Preview. ” window.
Related: Do you want to be able to save your inputs to a file so you can later edit them or reprint the schedule? Then the C-Value! for Windows program is what you need. It is even more flexible than this calculator, and you can save your work to a file for later recall.
Printing the Payment Schedule
Actually, there’s not a lot to say about printing.
Users should know that printing is expected to work from any device. It’s pretty cool to print a well-formatted schedule from a smartphone that is connected wirelessly to a modern printer. (I’ve personally tested this using an iPhone 5 and iPhone X printing to an HP LaserJet Pro 400.)
If you have any problems, please let me know what browser and version you are using. I can test various browsers, but unfortunately, I can’t check too many printers (unless you are prepared to donate one to the cause!).
Related: Don’t overpay, don’t under collect. If you need to track payments on the exact date they are paid (or missed) for whatever amount, then try this free online loan payoff calculator. For a step-by-step example see the payoff calculation tutorial.
What Do You Think?
Or what would you lke to know?
MS Excel® is a registered trademark of the Microsoft Corporation.
Need More Options?
Here Are 5 More Loan Schedule Calculators
- mortgage calculator — calculate future home value and compare to total mortgage cost
- loan calculator — supports extra payments and dates in a more mobile friendly design
- auto loan calculator — calculate total cost of ownership
- biweekly calculator — in one schedule, compare a biweekly loan to a normal loan
- financial calculator — create schedules with missed payments and changing rates
Loan Payment Schedule Help
The “Loan Date” is the date the monies are advanced. It is also called the “origination date”.
The “First Payment Date” is the date the first payment is due. It may be the same date as the “Loan Date” but not usually. When they are the same, this is known as “Payment-in-Advance”. Leases are typically paid-in advance.
“Points” are charged on some loans by the lender. Points are expressed as a percentage of the loan amount. A 300,000.00 loan with 2 points results in an extra fee due the lender of 6,000.00. Points are common for mortgages in the US only. Normally, you will want to leave this input set to 0.0%.