During the course of your lifetime, you may have occasion to borrow money for a major purchase a home or auto, for example. The amortization calculator helps you determine the periodic payment you will have to make to repay a loan in a specified time. Your debt can be systematically reduced (amortized) on a monthly or annual basis.
Each payment includes both a partial repayment of the face value of the loan (principal) and a partial repayment of the interest due on the loan. Longer repayment periods may reduce the amount of each payment but they also will increase the amount of interest you will pay on the loan.