Amortization Calculator  Amortization Calculator

Monthly Pay ($):
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Total of {{payments}} Loan Payments ($):
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Total Interest ($):
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Beginning Balance Interest Principal Ending Balance
{{result.num}} {{result.begin | currency}} {{result.interest | currency}} {{result.principal | currency}} {{result.end_balance | currency}} {{result.year_end}}

What is amortization?

Amortization can have multiple meanings.

  1. Physics.

    In physics amortization means mitigation of impact or load.

  2. Finance.

    Here amortization means systematic repayment of the debt (credit) over a certain period.

  3. Accounting.

    In the formation of cost of goods and services, the company always takes into account the cost of exploitation of tangible and intangible assets of the enterprise, sometimes the depletion of non-renewable natural resources. This kid of cost called amortization

So, what do these types of amortization mean?

Amortization in finance.

Often this kind of amortization people hear in the process of obtaining a loan or mortgage.

You take a Bank loan/mortgage at a certain percentage per year and for some period. This way, You commit monthly for the stipulated period of the contract to pay an amount that covers the interest and part of main debt.

Amortization in accounting.

When generating reports for tax accountant always takes into account the movable/immovable property and intangible assets that the company owns.

Because in the process of operation of such property it loses its value. The tax code has for each kind of property defined amortization rate.

Let's say, the company buys the vehicle for the delivery of goods and puts it on the balance. It is clear that the vehicle has the period of depreciation, it loses its initial value and becomes obsolete. Here we should calculate amortization/depreciation cost. During the amortization period, the cost of such asset can be completely written off from the balance sheet.

Another case can be where the company buys a license for a certain period of use. It is an intangible asset, but it also get depreciation. For example, if the cost of the license $ 10 million and the term of its use of 10 years, the company can record the depreciation expense by $ 1 million per year.

What does this online-calculator? calculates

If You want to make monthly or annual repayment schedule (loan/mortgage), You need to enter values in the fields : loan amount, how many years does the debt will be paid and the annual interest rate on the loan.

The calculator will automatically calculate for You the required monthly and annual payment.

In addition, in the table you can see what part of the amount paid goes to pay interest, and which covers the debt.

This calculator is also useful for the accountants.

Do this accountant should enter full value of asset and number of years - how many years the depreciation is calculated. Also annual rate should be input 0%

You can see the exact figure depreciation for a specified period in the table.