Amortization Schedule

Amortization Schedule is a schedule prepared for the payment of a mortgage loan. It is a detailed timetable showing-

• The beginning principal amount.
  
• Period payments.
  
• Amount of each interest and principal payment.
  
• The remaining last balance.
  

For example, Shawn has taken a loan of $ 50,000 at an interest of 7.5% per annum for the period of 1 years and 3 months. So, his monthly installment comes to $ 3502.42.

Payment No.	Date	Principal Paid	Interest Paid	Amount Balance
01.	2005-08-01	3189.92	312.50	46497.58
02.	2005-09-01	3211.81	290.61	42995.15
03.	2005-10-01	3233.70	268.72	39492.72
04.	2005-11-01	3255.59	246.83	35990.31
05.	2005-12-01	3277.48	224.94	32487.89
06.	2006-01-01	3299.37	203.05	28985.46
07.	2006-02-01	3321.26	181.16	25483.04
08.	2006-03-01	3343.15	159.27	21980.62
09.	2006-04-01	3365.04	137.38	18478.20
10.	2006-05-01	3386.93	115.49	14975.77
11.	2006-06-01	3408.82	93.60	11473.35
12.	2006-07-01	3430.71	71.71	7970.93
13.	2006-08-01	3452.60	49.82	4468.51
14.	2006-09-01	3474.49	27.93	966.08
15.	2006-10-01	3496.38	6.04	Paid

Interest rate:

Interest can be defined as an additional charge on the principal amount of the loan. Interest rate is expressed as the percentage of the total mortgage loan amount.

Principal payment:

Principal is the original loan amount specified in the mortgage deal. The amount of the mortgage loan that a borrower takes out is called the principal amount. The borrower has to repay that amount.

Total monthly payment:

Generally, you repay the loan that you have taken out on a monthly basis. You pay a part of the principal amount along with the interest amount on a monthly basis. In other words, total monthly payment amount is the sum of the principal payment and the interest payment amount.

Remaining principal balance:

A principal balance is the amount outstanding on a loan that needs to be repaid to the lender. It does not take into account future interest or fees that will accrue.

Calculate it yourself

• Amortization Calculator