An amortization schedule loans or amortization is a plan to repay a loan by means of disbursement in installments. It helps to identify, at all maturities, the share of the loan repaid, the loan outstanding, the amount of interest and monthly payment (loan + interest paid). These four elements are crucial for any comparison of supply and making a better decision.
I am at your disposal: an array of automatic calculation of borrowing . It allows you to easily compare different offers on the market and see the different elements that let you make your decision to borrow.
How can it be used?
I'll put an example below of a loan of Euro 5000 at the rate of 12% to be repaid by 14 monthly payments. Once the data is entered simply click to get the amortization schedule.
In the table you will have four main columns that I will explain below, giving as an example the calculations of the first line:
- Payment Amount: this is the monthly pay = amount + interest share of capital payable (principal). To calculate it, we need another formula for the capital share is unknown at this time, so to calculate it we have another formula:
This formula is applied at the level of mortgages, although it did is not the only method of calculating the monthly
- Amount interest: the share of interest = Still to pay monthly rate proportional x = 5000 x 12% / 12 = 50
- Main : The share of capital to pay = monthly - Interest amount = 384.51-50 = 334.51
- Still to pay : That remains to be paid by deducting the shares of capital already paid = 5000 to 334.51 = 4665.49
Response to Comments:
The 1 in the formula quoted here comes from the formula of the present value of a series of annual (or monthly) should be equal to the capital borrowed.
If you replace V by 0 K, and by m i by T/12 you get to the same formula mentioned in this article, which comes from the discount amount of each "a" to the period 0. To calculate a calculator, yes it can and must learn to do it at once to get the result as fair as possible.
I hope this answers your question.
hello on your example, can you tell me what is the number 1 in your formula for calculating the monthly payment and can we make this formula on a calculator;
thank you