Which of 9 Loan Calculation Options Will Save You the Most Interest?

Have you been looking `for an amortization schedule to handle a loan feature that other web calculators can't accommodate?

Or are you looking for an amortization calculator which is easy to use yet provides you with tons of details including the ability to set the original loan date followed independently by the payment start date?

Or are you looking for an amortization calculator that can create professionally printed schedules from any device?

If so, then this is the calculator for you. Scroll down the page, and below the calculator, you'll find all the options and features explained.

If, on the other hand, what you want is a quick schedule, then here is all you need to do...

- Leave all inputs and setting set to their defaults
- Enter the "Loan Amount"
- Enter expected "Number of Payments"
- Enter the "Annual Interest Rate"
- Set "Payment Amount" to "0" (the unknown)
- Click either "Calc" or "Print Preview" for your schedule

That's it! That's all you need to do to create a standard loan schedule.

But what if the terms of your loan do not conform to this calculator's default settings? Or what if you want to know what amortization method will save you the most in interest charges?

Then keep reading. All the options, as well as the **nine types of amortization schedules this calculator can create**, are explained below...»

- Calculate tax benefits
- Appreciated value
- User can set dates
- Extra payments

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*adjustable rate loan or mortgage (ARM)*? Need to enter *regular or irregular extra payments*? Need to *amortize a construction loan*? Then use this financial calculator. Users can enter multiple loan advances and adjust payment amounts and interest rates on any date.

According to Wikipedia "Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance."

Further, "an amortization schedule is a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator."

(To be technical here, I take issue with the use of the word "regular" as used in the definition. I prefer "periodic" or "recurring" instead. Perhaps I should edit the entry?)

That's what amortization is, but the definition does not address, naturally, the different methods used for calculating an amortization schedule.

This calculator does!

It supports the following nine amortization types.

- Normal Amortization
- Rule-of-78s Payment Table
- Interest Only Payment Schedules
- No Interest Loan Schedules
- Fixed Principal Amortization
- Canadian Loan Schedule
- Amortization with Points & Annual Percentage Rate (APR)
- Loan Schedule with Final Balloon Payment
- Negative Amortization

You'll find each method discussed below.

But, before we discuss how to create the various loan tables, I need to point out some essential options impacting the initial period's interest calculations.

Important Note About Dates: This calculator supports variable length first periods. That is, the calculator calculates the exact amount of interest due even when the initial period is shorter or longer than the other scheduled periods. **Supporting odd length first periods results in more accurate calculations, but you'll see interest charges that do not match other calculators.** If you want to match other calculators, then set the "Loan Date" and "1st Payment Date" so that they equal one full period as selected in "Payment Frequency." Example: If the "Loan Date" is May 15th and the "Payment Frequency" is "Monthly," then the "1st Payment Date" should be set to June 15th, that is IF you want a conventional interest calculation.

Click on "Settings" for "Long / Short Period Options"

A long first period occurs when the period between the loan date and the first payment date is longer than the selected payment frequency. The calculator can calculate the interest due for these extra or odd days in one of four ways.

- None - free money! No interest calculated on the odd days
- With first - odd day interest paid with first payment due. Payment will be larger than the other periodic payments.
- With origination - odd day interest is due when the loan originates - commonly known as "prepaid interest"
- Amortized - a small amount of odd day interest is paid with each payment. The calculator increases all payments to be equal.

A short first period occurs when the period between the loan date and the first payment date is shorter than the selected payment frequency. The calculator can calculate the interest due for the short period in one of three ways.

- No payment reduction - the calculator calculates what is considered to be a "normal" normal payment amount and uses it for the first payment. The last loan payment is reduced to compensate for the short period
- Reduce first - the first payment is reduced to compensate for the short period
- Reduce all - all payments are reduced to compensate for the short period.

Here's a more formal definition of odd days interest from the Financial Dictionary.

One more comment about dates.

By default, the schedule's totals are calculated as of December 31.

But some taxpayers pay taxes based on a different year-end. This calculator supports annual and cumulative totals as of any month end.

Click the "Settings" button and select "Year End Month."

If in doubt, use this setting when amortizing a loan. In the US at least, nearly all loans use the "normal" method.

These are the characteristics of a normal loan or mortgage:

- They have "level payments" i.e., the scheduled periodic payment amount does not change. (With the possible allowance, as discussed above, for odd day interest.)
- The interest amount paid declines each period as the loan balance is being paid down.
- Thus, the principal amount paid each period increases to keep the payment amount level.
- There may be a slight adjustment ("rounding") of the final payment so that the loan is brought to a 0 balance.

The next method, consumers will want to avoid.

The Rule-of-78s method front loads the interest due. That is, the debtor pays more interest early in the payment schedule and less interest later when compared to a "normal" loan.

Both the periodic payment amount and the total loan interest due are the same for both the Rule-of-78s and the "normal" methods. The only difference is how the interest gets allocated each period.

The blog post here thoroughly explains the Rule-of-78s amortization and why, as a consumer, you may want to avoid such loans.

For the lowest periodic payment, get a loan using the next payback method. There's only one catch...

Some loans require the borrower to pay only the interest due each period. Such loans are known as "interest only loans"

These are the characteristics of an interest only loan or mortgage:

- The periodic payment amount generally does not change.
- The interest amount paid each period is the same because no principal is paid, the loan balance does not change.
- The entire principal balance plus the last period's interest is due with the last payment.

If you think that interest only loans are not very common, then think again.

Many bonds sold to investors are interest only loans. The bond's buyers are lending the issuer money. The bonds pay the buyer a periodic coupon payment which is the interest on the debt. And as reported by Zacks the size of the bond debt in the US at "the end of 2017 was more than $40.7 trillion"

That's a lot of debt financed with interest only payments!

If you represent a bond issuer, you can prepare a bond coupon payment schedule with this amortization calculator. The "loan date" is the bond's issuance date and the "first payment date" is the date of the first coupon payment. Make sure to select the "Interest Only" amortization method.

Yes, it happens! I added this amortization method to the Windows version of this calculator 20 or more years ago. Someone called me (remember phone calls?) and said he and his wife were lending money to their son and they wanted to create a payment schedule that they could agree to, the catch was, there would be no interest charged.

This amortization schedule continues to support an interest-free loan.

You may ask, "Why not just enter a "0" interest rate?"

The answer is simple. If a user enters a "0" for any input, then the calculator interprets that as the unknown value. So if a user enters a "0" for the interest rate, the calculator will attempt to calculate the rate.

To get around this, select the "No Interest" option for an amortization method.

The following amortization method will save you interest charges if you can afford it.

Before computers and calculators, that is, before it was easy to calculate a level payment amount, lenders frequently had lenders payoff loans using the fixed principal amortization method.

Why?

Determining the payment amount requires only simple arithmetic. To calculate the payment due, first, divide the principal loan amount by the number of payments in the term and then add the periodic interest.

These are the characteristics of a fixed principal loan or mortgage:

- Payment amount start higher than a "normal" loan.
- The loans feature a declining payment amount. As the borrower pays down the principal balance, the interest due each period is reduced and therefore the payment decreases over time.
- The principal amount paid each period is fixed. The principal paid on a $1,200 loan with a term of one year will always be $100.
**The borrower pays less total interest**- There may be a slight adjustment ("rounding") of the final payment so that the loan is brought to a 0 balance.

The Canadian amortization method is the same as the "normal amortization method" except for one detail. When the user selects the Canadian method, the calculator automatically sets the payment frequency to monthly and the compounding frequency to semiannual.

A conventional loan typically uses the same frequency for both payments and compounding.

The Canadian method, because it uses less frequent interest compounding, results in a slightly lower scheduled payment amount because the interest due is somewhat less each period when compared to the interest charges owed under monthly compounding.

For more details, here's a A Guide to Mortgage Interest Calculations in Canada.

Occasionally, there are times when the terms of a loan call for a payment to be calculated on a 30-year payback but the loan will come due after five years of payments (for example).

Because the payment calculation uses a 30-year term, the balance of the loan will still be substantial relative to the starting balance when the term is up in five years, and the balance is due.

Creating an amortization schedule showing the balloon payment amount is simple with this calculator.

- First...
- Enter the loan amount
- Enter the interest rate
- Enter the number of payments which will be used to calculate the periodic payment due - in this case 30-years or 360 monthly payments.
- Enter "0" for the payment amount and click on "Calc"

- Then....
- Change the number of payments to the actual term of the loan - per this example that's 5 years or 60 payments
- Click on "Print Preview" to see your amortization schedule with a balloon payment.

balloon payment calculator. It creates a schedule too.

Need to calculate a regular periodic payment amount that results in a specific final balloon payment? Then see this site'sSome loans require the borrower to pay an upfront charge called "points."

Why would a borrower be willing to pay an extra charge?

When the borrower pays points, the lender reduces the interest rate. Points are in essence prepaid interest (and the IRS treats them that way). One point is one percent of the loan amount. Thus, one point on a $300,000 is equal to $3,000.

The user has two choices for how to create an amortization schedule with points. Click on "Settings" and select "Points, Charges & APR Options."

If "Include dollar value of points in interest charges" is checked then the calculator calculates the dollar cost of the points, and the payment schedule shows them paid at the loan origination. The calculator also adds the cost of points to the total interest charges.

If the user didn't check this option, then the dollar value gets reported in the header only, and the amount does not get added to the total interest.

See Moving.com "What Are Mortgage Loan Points?" for more details.

Points impact the loan's annual percentage rate. If you want to check the APR (and if you are the borrower, you should), you can include a Truth-in-Lending Act compliant calculation in the schedule's footer. Just check the option "Include Regulation "Z" APR Disclosure calculation at the end of the schedule?". For an accurate APR, don't forget to include any fees in "Other charges & fees (for APR calculation)?" input.

APR Calculator and Disclosure Statement. This calculator calculates APR and creates a printable disclosure statement.

If you have any questions about APR calculations and what fees to include or exclude, see this site'sUsers frequently tell me they use this calculator to "check their lender's payment amount."

That's fine, of course. But all borrowers should also understand, there is no such thing as a "correct payment amount." The only payment amount of concern is the amount agreed to between the lender and borrower. All things being equal if the lender says the payment is $315 a month and the borrower expects it to be $311 a month, it doesn't matter - as long as they both agree on the initial period's calculated interest amount. If the parties agree on the interest calculation, then paying a slightly higher amount will pay the loan off marginally faster or result in a smaller final payment, and the total collected as interest will be slightly less.

So what does this have to do with negative amortization?

Simple, if the lender and borrower agree on an amount that is not large enough to pay the interest due it results in negative amortization.

This amortization calculator gives the user the ability to set any payment amount. Rather than enter a "0" for the payment, enter the agreed upon payment amount.

When the payment amount is less than the periodic interest due, the loan balance will increase each period because the interest not covered by the payment must get added to the balance.

There is nothing wrong with a negatively amortizing loan per say. However, the borrower will have to be prepared to pay a single, large payment at the end of the term.

If you are the borrower, be sure to check the last payment row of the schedule for the final payment amount, which includes the accrued interest, to see if you can handle it.

Note the negative principal amounts in the below figure.

From time-to-time, I get requests from users for the ability to export an amortization schedule to Excel. This calculator won't do that. However, users can select the data and copy/paste to Excel.

You can copy/paste from either the main window or from the print preview window. If you copy from the main window, then formatting will remain intact. If you copy from the print preview window, then only the values will be copied. Depending on the browser you are using, you may have to use Excel's **Paste Special** feature and select "Text" for copy/paste to work.

If you want to copy from the main window, I think the easiest way to do that is to scroll to the end of the schedule and select the last row and then scroll upwards to select the entire table.

C-Value! for Windows program is even more flexible than this calculator and it will export directly to Excel.

MyIf you want to share this calculator's schedule with someone or save it in a digital format for later reference, you can print the results to a PDF file.

If you are using Google's Chrome browser, printing to PDF is a standard feature. Click on Chrome's menu (the 3 verticle dots) and select "Print..." Click on the "Change..." button and select "Save as PDF."

If you are not using a browser that supports printing to a PDF, no problem. You can install a PDF print driver. It pretty easy to do this. And there are many free ones from which to pick. In the past, I used PrimoPDF.

By the way, one advantage of installing a PDF print driver, even if you use Chrome, is you'll then be able to create PDF files from any application you use, not just your browser.

**Make sure, when saving to PDF that you use the "Print" button on the "Print Preview..." window.**

C-Value! for Windows program is what you need. It is even more flexible than this calculator, and you can save your work to a file for later recall.

Do you want to be able to save your inputs to a file so you can later edit them or reprint the schedule? Then theActually, there's not a lot to say about printing...

Users should know that printing is expected to work from any device. It's pretty cool to print a well-formatted schedule from a smartphone that is connected wirelessly to a modern printer. (I've personally tested this using an iPhone 5 and iPhone X printing to an HP LaserJet Pro 400.)

Make sure you are printing from the "Print Preview..." window where there are two print buttons available.

If you have any problems, please let me know what browser and version you are using. I can test various browsers, but unfortunately, I can't check too many printers (unless you are prepared to donate one to the cause!).

**free online loan payoff calculator**. For a step-by-step example see the payoff calculation tutorial.

Or what would you lke to know?

While this page covers a lot of material on amortization schedules, it can't cover everything.

Let me know in the comments below what I missed. Or feel free to ask your questions and I'll answer them (to the best of my ability).

Naturally, you can also tell me what I got right. Tell me what feature is particularly useful to you that you did not find in other online calculators.

MS Excel® is a registered trademark of the Microsoft Corporation.

Every loan has four primary attributes or variables. (1) The loan amount, (2) the number of payments, (3) the annual interest rate and (4) the payment amount.

Enter any 3 values and zero ('0') for the unknown value. Click the "Calc" button to solve for the unknown and create a schedule.

Note: you can enter a non-zero value for all 4 variables. In that case, your inputs will be used to create the amortization schedule.

The "Loan Date" is the date the monies are advanced. It is also called the "origination date".

The "First Payment Date" is the date the first payment is due. It may be the same date as the "Loan Date" but not usually. When they are the same, this is known as "Payment-in-Advance". Leases are typically paid-in advance.

"Payment Frequency" determines how often payments are due. Monthly is the most common in the USA.

"Compounding" impacts how interest is calculated. In most cases "Compounding" should equal the "Payment Frequency".

"Points" are charged on some loans by the lender. Points are expressed as a percentage of the loan amount. A 300,000.00 loan with 2 points results in an extra fee due the lender of 6,000.00. Points are common for mortgages in the US only. Normally, you will want to leave this input set to 0.0%.

To print any loan schedule, click on "Print Preview" and then "Print this schedule". "Print Preview" will also function as a "Calc" button.

- mortgage calculator — calculate future home value and compare to total mortgage cost
- loan calculator — supports extra payments and dates in a more mobile friendly design
- auto loan calculator — calculate total cost of ownership
- biweekly calculator — in one schedule, compare a biweekly loan to a normal loan
- financial calculator — create schedules with missed payments and changing rates

Is there a way to post extra payment against principle?

There is, but not with the amortization schedule. Please use the recently updated loan calculator. It now has the same features as the amortization schedule plus a few more including the ability to add a series of extra payments or a single extra payment. If you need even more flexibility, then I’ll make other suggestions.

I’m trying to figure the payoff amount to close a loan that would ordinarily run for another 3 years. The hard part comes in because my debtor paid a one time principal-only $10,000 reduction and then 5 months later paid another $5,000 to reduce the principal even further. Is there a way to enter two disparate amounts paid at these odd intervals and still come up with the correct balloon payment he needs to make to pay the loan off early?

The amortization schedule calculator is not designed for such flexibility. However this calculator can be used as a loan payoff calculator. Please scroll down the page and look at tutorial #25. I also suggest you take a look at tutorial #1 to get started.

The above-suggested calculator allows users to enter payments made on any date for any amount. Once you have reviewed the tutorials, if you have any questions, please ask.

This is a really helpful calculator. There is a down payment assistance program for first time homebuyers in San Diego. They offer a payment deferred (for 30 yrs) piggyback loan at 3% for up to 17% of the purchase price. As your calc shows, 17% of anything is pretty huge after 30 yrs of deferred payments.

Wow, I wasn’t aware of such a program. That’s too bad. Subsidies just enable the sellers to get a higher price than they would otherwise be able to get. And in addition, they expose the taxpayers to payback risks.

Karl

Love this amortization program

Can I buy this program which allows me to choose an old state date and also print the schedule. I have a Mac

Glad you like the calculator. The software I have available for download only runs on Window PCs. However, it’s not clear to me what you need to do that this calculator won’t do? (I think there’s a typo in you question.) This calculator does allow you to set any date you need back to January 1, 1970.

I want a calculator that allows me to put in the date the payment was actually made and it calculates the principal and interest split. Can you help me with that?

Thank you

Sure can. Please see this loan payoff calculator.

Above will let you enter individual or series of payments with any payment date. You can also change rates and have additional borrows if needed.

The best way for learning how to use it, I think, is to scroll down the page to the tutorials. Everyone should review tutorial #1 for orientation. Then tutorial #25 explicitly addresses your requirement.

Thank you.

Does amortization HAVE to happen only one way? For example, rather than the first payment being nearly all interest, may the first payment be nearly all principle?

No, it does not. I have had users mention that there are loans where all the interest is paid at the end. I have no first hand experience with this however.

Under the "Amortization Method" setting, you can select "Fixed Principal" and depending on other factors, the 1st payment may have a larger amount allocated to principal than to interest. But for this method, the payment amount declines. The total interest paid will be less than with the normal method.

Hi, any way to figure out what the effective amortization is?

"Effective amortization" is not a term with which I’m familiar. Can you give me an example or briefly explain what it is? Then I’ll look into it.

Can make same calculation by excel

From the "Print Preview" view, it is possible to select the entire schedule and then copy/paste it into Excel. You may have to use Excel’s "Paste Special" feature and paste it as unformatted text depending on which browser you are using.

If you want to export an amortization schedule to Excel, then the

C-Value!program has that feature. It costs $49.95 and runs on any Windows computer.Hi, I’m thinking you’ll be able to help me – I have a seller financed mortgage and I’m trying to determine what balance remains. The loan is/was for 20 years, started in 2015. Year 1-2, the interest was a certain percent. Year 3-7 is another percent, year 7-10 is another percent and years 10-20 is another percent. The payment will be the same throughout the loan. Do you have a calculator for me?

Hi, sure do!

Please look at this financial calculator. This calculator will allow you to change the interest rate on any date. It can also accept a series of loan payments or individual payments on specific dates if you need to track those as well.

Once on the page, scroll down for a series of tutorials. I suggest that everyone take a look at #1 to get started. Then you can pick ones that deal with your specific needs. Feel free to ask any questions you might have.

If you try it, let me know how you made out, please.

Hey Karl. Thanks for posting the calc.

I was actually using your calcs to match up with mine and everything works well. I’m trying to create an excel amortization worksheet for a 180/365 mortgage. Can you provide me with the interest calculation for this please? Thanks in advance.

Willy

Hi Willy, I limit my comments to answering questions about either how to use a particular calculator or what calculator is best to use to solve a given financial problem. The equations are my IP and I charge for my services to build custom calculators for other sites. Perhaps someone else will answer your question.

Is this a one time purchase price or an annual fee. It appears you offer support for your software?

For either C-Value! or SolveIT!, the charge is a one-time charge for the current version. If a user ever wanted to upgrade, then there would be another charge. Support is either via email or comments on a web page.

Of course, the calculator on this page is free.

The printing function does not show up when the Print preview box is chosen.

There are "Print" buttons located in 2 places in the "Print Preview" window. One in the upper left corner of the window frame and one at the end of the schedule itself (you’ll have to scroll as it’s not on the frame) in the bottom center.

If you don’t see either, can you tell me what device you are using and what browser. I’ll check.

I am using Windows 10, Google Chrome on a desktop computer. When I press calculate i can see the schedule, but when I click the print preview, absolutely nothing happens. I tried both the amortization schedule and loan schedules. It just won’t print. This is a $2.8M loan so it is quite lengthy, though I won’t print the whole thing. is this out of the parameters of the software?

There’s a loan amount limit of 999 million and 999 for the number of payments.

Also, there normally is 0 problems with Chrome or Windows 10. That’s exactly what I use.

I know it’s going to sound stupid, but when was the last time the computer was rebooted? I would try that, or if you are familiar with task manager, you can see if all Chrome sessions are killed after closing the browser. Perhaps you have a Chrome session that has crashed.

One note, you needn’t click the calc button before using the print preview button. Print preview will also calculate the unknown value.

Can you let me know if you reboot if that helps?

OK, I see because that particular loan has a rather small monthly payment, the number of payments exceed 999, which is why the program wouldn’t work.

Thanks and have a super week!

Oh, thanks for letting me know. That’s not good. Such a case should show the user a message. I’ll look into adding one.

One thing, it may be, and I just forget now. If you were solving for the number of payments, it could be that the browser ran out of memory. The limit of 999 is on the input. But I think the only limit on a calculated term is based on available memory.

how do i produce an amortization schedule for a 10 year loan that the first 2 years are not paid until the beginning of year 3 but acrue interest for the first 2 years and the first payment is the accrued interest only

There is a calculator on this site that will do what you need, but not this one.

For complete flexibility please see this financial calculator. Once on the page, scroll down to the tutorials and check out tutorial #1 to get an overview. Then see the tutorial about interest only payments. Basically, you’ll enter a loan in the first row with the loan date, followed by one row that is for a single interest only payment on any date you would like. Then follow the single payment row with a row for the required number of principal and interest payments (119 for 10 years less the single interest only payment).

Also, under "Settings", you’ll need to check out the interest options for long initial periods.

If you have questions, you can ask them in the comments at the bottom of that page.

Please let me know how you make out.

I am trying to use your online calculator to create an amortization table for a recently opened loan, but when i change the loan date to 12/18/17 and the first payment due to 2/1/18 and hit Calc, the dates both change to today’s date. Am I missing something? Or is it just not compatible with my system? I have a Mac (with MS Office installed on the desktop and available in the cloud), but since I am using your calculator online I wouldn’t think that would matter.

This online amortization schedule should work just fine using any modern browser, on an computer. Try this before clicking calc (or the print preview, which acts like calc), make sure you’ve tabbed off the date fields.

When you do that, do the dates still stay set?

What are your other settings? If you happened to have entered the dates in reverse, this might confuse the calculator and it could set the date today, though I’ve not checked that.

I figured it out — I was typing in the date with only two digits for the year, so when I hit tab it just changed back to today’s date (it briefly showed “1917” which I didn’t catch the first time). Once I entered the years as 4 digit numbers it worked fine. Thanks for the quick response!

Oh, thanks for letting me know. Glad you got it figured out. (I should have suggested it, or recommend using the pop-up calendar.)

Your Calculator is the only one of many I have found that created an amortization schedule that is to the penny accurate to my current loan. Thank you!

I do have a question tho. I know the interest compounds daily as far as the bank is concerned but they also reference a 360 method. When I try to enter both in other calculators it does not allow, it wants one of the other and the numbers are not accurate. Can I ask what the difference is between your calculator and the others? Does it have anything to do with the “normal” amortization method coupled with the daily compounding?

I am needing to explain this to another person and wish to be able to understand it myself first.

I can’t say exactly without knowing specifically what "other" calculators you are referencing.

But my guess is they make assumptions and they just haven’t gone to the trouble to allow the user to make all settings. The calculator gets more complex if the user has more options.