Amortization Schedule Calculator: Equal Principal Payments
Use this amortization schedule calculator to create a printable table for a loan or mortgage with fixed principal payments. The amortization schedule shows - for each payment - how much of the payment goes toward the loan principal, and how much is paid on interest.
Loan Payment = Principal Amount + Interest Amount
With a fixed principal loan, loan payment amounts decrease over the life of the loan. The principal amount included in each payment stays the same but the interest amount decreases over each payment period.
The fixed principal loan schedule is also known as a "fixed principal declining interest loan amortization schedule." The amortization schedule shows equal principal payments and decreasing interest amounts.
Loan Amount The size or value of the loan. Interest Rate The annual stated rate of the loan. Number of Payments The total number of payments, initial or remaining, to pay off the given loan amount. Payment Frequency How often is the loan payment due? Typically loan payments are due monthly, but several options are provided on the calculator. Compounding This calculator assumes that compounding coincides with payments.
The more typical car loan and mortgage amortization schedule includes consistent loan payment amounts over the term of the loan. For each equal payment, the amount applied to interest decreases and the amount applied to principal increases.