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Jinsi ya kukokotoa Amortization Schedule

Amortization Schedule ni nini?

An amortization schedule breaks down every loan payment into its principal and interest components over the full loan term. It shows exactly how much of each payment reduces the balance versus paying interest.

Fomula

Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Mwongozo wa Hatua kwa Hatua

  1. 1Calculate fixed monthly payment using the annuity formula
  2. 2Month 1 interest = balance × monthly rate; principal = payment − interest
  3. 3New balance = previous balance − principal; repeat until balance = 0

Mifano Iliyotatuliwa

Ingizo
$250,000 loan · 6% annual rate · 30 years
Matokeo
Monthly payment = $1,498.88 · Total interest paid = $289,595
In month 1 only $248.88 of $1,498.88 reduces the principal balance

Makosa ya Kawaida ya Kuepuka

  • Comparing APR vs note rate when calculating payments
  • Forgetting taxes and insurance in total housing cost
  • Ignoring prepayment penalties when planning extra payments

Je, uko tayari kukokotoa? Jaribu Kikokotoo kisicholipishwa cha Amortization Schedule

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