Question 1

How is amortization different from simple interest?

Accepted Answer

Amortization splits each payment between interest and principal, while simple interest only tracks the interest owed on the original balance. With amortization, you build equity with each payment as the principal decreases.

Question 2

Can I use this calculator for auto or student loans?

Accepted Answer

Yes — any installment loan with fixed payments and a defined term will work. This includes auto loans, personal loans, student loans, and home loans. The loan payment schedule formula is the same regardless of loan type.

Question 3

How do extra payments affect the schedule?

Accepted Answer

Extra payments reduce your balance faster, saving interest and shortening your loan term. Since extra payments go directly toward principal, they reduce the amount on which future interest is calculated. Even small additional payments can result in significant savings.

Question 4

What if I change the interest rate mid-loan?

Accepted Answer

The calculator assumes a fixed rate throughout the loan term. For variable-rate or adjustable-rate mortgages (ARMs), re-run calculations with updated terms whenever the rate changes to see how rate adjustments affect your payments.

Question 5

Can I export the amortization table?

Accepted Answer

Yes — you can copy the summary results using the 'Copy' button, or print the detailed amortization table directly from your browser. The schedule shows every payment over the life of your loan.

Question 6

What's the difference between monthly and bi-weekly payments?

Accepted Answer

Bi-weekly payments result in 26 payments per year (equivalent to 13 monthly payments), which can significantly reduce your loan repayment time and total interest. Use the payment frequency selector to compare the impact of different payment schedules.

Amortization Calculator