The term amortization is a process of paying off a debt. The debt must be paid over a long time period and should follow regular payments.An amortization schedule, on the other hand, is a table that gives details of each of the payment that has been paid off of the debt. The payments for this amortization schedule are calculated by using an amortization calculator.
Taking a loan nowadays has become extremely common. Most often people do not hesitate in taking loans from more than one party. In such cases, the amortization calculator helps in keeping a track of payments. No matter how many loan one has taken and from how many parties, he does not need to rely on that party to calculate the payment left and paid. This amortization calculator can make his life so easy. An amortization calculator calculates the rate of interest on the loan with a fixed rate. It also tells the user that exactly how much of the principal amount is still left to repay.
This calculator allows the user to calculate irregular length payments as well. That means, the calculator can easily calculate the exact amount of interest that is due even if the first payment period is of a different length than the other scheduled periods. Not all amortization calculator templates are able to calculate under such conditions, but some can really do it. So the user is advised to choose the template that suits his needs best. One can easily download this free amortization calculator template if he wants to manage the mortgages, home, automobile or educational loans apart from personal borrowings.
A typical amortization calculator template will look like a chart or an excel sheet. It will have columns and rows. The user can add in the principal amount at the top, the interest rate, the payment date and amount of first payment and other details like the frequency of repayments. The calculator will calculate the rate of interest on per period basis, the number of payments that will be required to completely pay off the loan and even an estimated amount of savings.
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