# LOAN AMORTIZATION CALCULATOR

## DESCRIPTION

The

**Loan Amortization Calculator** determines the payment amount per period and creates a summarized amortization schedule. The payment frequency determines how the interest is compounded. This calculator DOES take into account rounding (The payment and interest due each period is rounded to the nearest cent).

## DEFINITIONS

**Loan Amount** - This is the amount that you have borrowed, not the sale price of the home.

**Annual Rate %** - This is the annual interest rate quoted by the lender. US mortgages are usually quoted based on a monthly compound period. Note that this value is NOT the same as "APR".

**Term of Loan** - The total number of years it will take to pay off the loan. Mortgage loans usually have 15 or 30-year terms. Auto loans are usually between 2 and 5 years.

**Payment Frequency** - Used to specify the number of payment periods per year (monthly = 12 payments per year).

**Disclaimer:** Please do not depend on this loan amortization calculator to make your financing decisions. Your situation is unique, so please consult a professional. This calculator is for informational use only and does not constitute financial advice.