How do you calculate amortization?

Answer by  trixiek (41)

You don't have to calculate it. There are many sources online that will do it for you. All you have to do is enter the loan amount, interest rate, and the number of years. If you have Microsoft Excel, there is a wizard available that will create an amortization table for you too.

Answer by  harshielha (144)

Determine the principal balance that is the total money you will borrow and then calculate your monthly payment that is your interest rate,principal balance and the length of loan term to determine this value.Now, determine your monthly payment for example, if your interest payment for the first month will be $41.67 ($10,000 x 5 percent / 12 months).

Answer by  turkworker (1007)

There are so many amortization calculators online that can help you with this calculation. Google the company bankrate, and you will find an amortization calculator on their site. Once you find this, all you have to do is input your loan amount, interest rate, and the number of years you want to pay off your loan.

Answer by  Amber40 (24961)

Well you can either look up the formula and calculate it yourself by hand or go online a use one of the hundreds of amortization calculators available. Just fill in your information and it will list all your payments out.