amortization schedule
Amortization schedule is like a map that shows you how much of each payment you make on a loan goes towards paying off your loan and how much goes towards paying the interest. It helps you understand how long it will take to pay off your loan.
To make a amortization schedule, first you need to know the loan amount (how much you borrowed), the interest rate (how much the loan costs you to borrow each month) and the number of months to pay it off (how long you have to pay it back).
Then you need to figure out the amount of each monthly payment you need to make. This is called the principal or loan balance. You do this by dividing the loan amount by the number of months you have to pay it off.
Next, you need to calculate the amount of interest each month. You do this by multiplying the interest rate by the loan amount.
Finally, you create the amortization schedule by adding the monthly principal and the monthly interest together and then subtracting the total from the loan amount (the amount you borrowed). This will tell you how much of your loan is left after each payment. You can keep repeating this until you have paid off the whole loan.
To make a amortization schedule, first you need to know the loan amount (how much you borrowed), the interest rate (how much the loan costs you to borrow each month) and the number of months to pay it off (how long you have to pay it back).
Then you need to figure out the amount of each monthly payment you need to make. This is called the principal or loan balance. You do this by dividing the loan amount by the number of months you have to pay it off.
Next, you need to calculate the amount of interest each month. You do this by multiplying the interest rate by the loan amount.
Finally, you create the amortization schedule by adding the monthly principal and the monthly interest together and then subtracting the total from the loan amount (the amount you borrowed). This will tell you how much of your loan is left after each payment. You can keep repeating this until you have paid off the whole loan.