1. What is a Mortgage Amortization Schedule?

An amortization schedule shows the breakdown of each monthly payment into principal and interest components, along with the remaining loan balance. It helps borrowers understand how their mortgage payments are applied over time.

2. How Does the Calculator Work?

The calculator uses standard amortization formulas:

Where:

• \( R \) — Monthly interest rate (annual rate / 12)
• EMI — Equated Monthly Installment calculated using the loan amount, interest rate, and term
• Outstanding Balance — Remaining principal at start of each month

3. Understanding the Amortization Process

Details: Early in the loan, most of each payment goes toward interest. As the loan matures, more of each payment is applied to the principal. This calculator shows this progression clearly.

4. Using the Calculator

Tips: Enter the loan amount in RM, annual interest rate as a percentage, and loan term in years. The calculator will generate a detailed month-by-month breakdown of your payments.

5. Frequently Asked Questions (FAQ)

Q1: How does extra payment affect amortization?
A: Extra payments reduce the principal faster, decreasing total interest paid and potentially shortening the loan term.

Q2: What is the difference between fixed and variable rate amortization?
A: This calculator assumes a fixed rate. Variable rates would require recalculation when rates change.

Q3: Are there any fees included in this calculation?
A: No, this calculates principal and interest only. Actual payments may include insurance and taxes.

Q4: How accurate is this calculator?
A: It provides accurate estimates for fixed-rate loans. For exact figures, consult your bank.

Q5: Can I print or save the amortization schedule?
A: Yes, you can print the page or copy the table for your records.