Are you having problems determining periodic payment due on your loan? Well, you are at the right place. We are equipped with professional staff and best amortization calculators to render quality loan amortization services to esteemed customers. Our calculation to arrive at the first periodic payments assumes your loan payment is not due on the first day but rather one full payment period into the loan. We ensure each customer is provided with an amortization schedule where each payment on an amortizing loan is shown. It includes how much of each payment is interest and amount going towards the principal balance.
Since people are less informed on mathematical calculations involved in creating this schedules, we provide the step by step calculations we do to customers for easy understanding. This also helps customers keep track of their Loan repayment statistics. Our loan amortization calculator ensures your loan amounts are adjusted until your monthly payments fit comfortably in your budget while varying of interest rates to see the difference a better rate. Our amortization calculator helps you work out how long it may take for you to pay your loan. Through the process we also amortize your debt e.g. a mortgage, and display your payment breakdown of Interest paid, principal paid and loan balance over the life of a loan. Each calculation we conduct shows you amortization tables with complete amortization schedules for the loan. You can view the amortization table either yearly or monthly.
For Instance, let’s say you want to purchase a new home for $300,000 with a $50,000 down payment. Your bank agrees to give you a mortgage of $250,000 at a fixed interest rate of 5% for 30 years. We help you determine your monthly payment, how much money you are going to pay towards Interest and each month’s principal. Let’s find out. First of all we determine for you the number of total payments you will make. In the example above, you have to make one payment per month for 30 years. This means you will make 360 payments over the course of the mortgage i.e. (12X20.360). Secondly, we help you determine your monthly payments. explore transfer pricing definition which impacts finances.
In the above example, if there was no interest rate it could be simple determining monthly payments by just dividing the loan amount by the number of payments i.e. ($250,000/360-$694.44) But the bank has to make money therefore the mortgage comes with 5% interest. It is important to note that the interest in annual. Since all payments are based on a monthly rate, we convert the annual Interest rate into a monthly basis i.e. (5%/12—0.416%). Using the formula, A—i x P x (1 +i)nI (1 + i)n – 1, we determine monthly payments to account for interest. A Is the monthly payment, P Is the loans initial amount, I Is the monthly interest rate and n is the total number of payments. Using the examples numbers, P-$250,000, i-0.416 and n-360. The formula yields a monthly payment of $1,342.05. Finally we determine for you total interest. From the example, we can determine total cost of the loan then subtract the original loan i.e. (360 x $1,342.05)- 1250.000—S233.139 after rounding off.