1. What is an Amortization Schedule?

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and interest that comprises each payment until the loan is paid off at the end of its term. With extra payments, the schedule shows how additional payments reduce the principal faster and shorten the loan term.

2. How Extra Payments Affect Your Loan

Extra payments directly reduce the principal balance of your loan, which means:

• You pay less interest over the life of the loan
• You pay off the loan faster
• Later payments have a higher percentage going toward principal

3. Understanding the Calculations

The calculator uses standard amortization formulas with adjustments for extra payments:

Where:

• Interest = Previous Balance × (Annual Rate ÷ 12)
• Principal Portion = (Payment + Extra) - Interest

4. Using the Calculator

Tips: Enter the loan amount, interest rate, term in years, and optional extra payments. Extra payments can be specified as a comma-separated list (e.g., "100,200,300" for $100 in month 1, $200 in month 2, etc.).

5. Frequently Asked Questions (FAQ)

Q1: How much can extra payments save me?
A: Even small extra payments can save thousands in interest and shorten your loan term by years.

Q2: Should I pay extra toward principal or make biweekly payments?
A: Both are effective. Principal-only payments give you more control, while biweekly payments automate the process.

Q3: Do all loans allow extra payments?
A: Most do, but some mortgages have prepayment penalties. Check your loan terms.

Q4: When is the best time to make extra payments?
A: Early in the loan term when interest costs are highest, but any time helps.

Q5: How do I specify irregular extra payments?
A: Use the extra payments field with comma-separated values (e.g., "0,0,500" for $500 in month 3 only).