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Amortization Summary
Monthly Payment: -
Amortization Schedule
Overview & Methodology
The monthly payment is calculated using the standard amortization formula:
$$ M = P \cdot \frac{r(1+r)^n}{(1+r)^n - 1} $$
where:
P is the loan amount,
r is the monthly interest rate (annual rate ÷ 12 ÷ 100),
n is the total number of monthly payments (loan term in years × 12).
The tool simulates the loan payoff month by month, calculating for each payment the interest, the principal repaid, and the remaining balance.
Example
For example, for a €200,000 loan at a 4% annual rate over 30 years, the calculator computes a monthly payment of approximately €954.83 and generates a table showing the breakdown of each payment.
Frequently Asked Questions
How is the monthly payment calculated?
The monthly payment is computed using the formula:
$$ M = P \cdot \frac{r(1+r)^n}{(1+r)^n - 1} $$
where r is the monthly interest rate and n is the total number of payments.
What does the amortization schedule show?
It provides a breakdown of each monthly payment into its interest and principal components and shows the remaining balance over time.
Can I use this tool for refinancing calculations?
Yes. You can input different loan amounts, interest rates, or terms to compare various scenarios.