An amortisation calculator is used to calculate the gradual repayment amount of a mortgage or loan. Information such as the mortgage amount, interest rate or interest amount, term of the mortgage is required when using the calculator so as the show the monthly installment amount and the future value of the mortgage.
The result obtained after punching information like the mortgage amount, interest amount and the term of the loan onto the amortisation calculator are the monthly installment amount, the number of payments to be done and the value of the mortgage at maturity date. The loan amortisation table is used on existing mortgage arrangement or when deciding to take a new loan.
Importance of using the calculator
For planning and decision making Loan calculation is important because the information is useful for planning and decision making. Information such as the loan payments amount, the date at which the mortgage is paid off and the total amount to be paid at maturity is important to know in order to decide on when to go into another financial commitment if it is necessary or to double the monthly installments so as to quickly clear the debt. The information is used to determine the money which can be saved by taking out a loan and the period required to clear off the debt as well as ascertaining if it is economic to borrow or not. Moreover, the calculator can be used to compare various options using different mortgage amount and repayment period. For budgeting purposes Amortisation calculators enable one to know his monthly financial commitments for budgeting purposes like affordability. It is also easy to track and record the interest rate amount to be deducted every month using this payments calculator. It is easy to use The loan amortisation calculator is easy to use and the amortisation formula is easy to apply. Loan calculation is an online service which can be utilised without limitations. It shows the mortgage amount and the future value on maturity which can be used to determine if it is economic to take the loan.
The accuracy of the mortgage amortisation results depend on the information supplied. Hence,we cannot rely on it if the information is not conclusive.