When secured by credit, the total purchase price of large items is repaid over time with added interest. The payment amounts and the duration of each billing cycle are specific to each loan and are related to a multitude of variables that affect repayment.

Major purchases, such as real estate and cars, are financed by installment credit, which provides consistent schedules and repayment amounts. These purchases are long-term investments that require years of performance. The installment credit thus allows borrowers to accurately predict payment responsibilities. The auto loan amortization calculator exploits all the factors affecting the borrowing and repayment of car loans, by distilling the payment amount of your loan at different intervals.

Loan amortization reduces risk for lenders

Loan amortization reduces risk for lenders

The repayment of the loan is subject to the conditions agreed by the lenders and borrowers at the origin of the loan. The amount of each payment, the length of the repayment period, and the interest percentage applied to the loan form the basis of the auto loan repayment schedules that consumers use to budget future purchases.

Loans are structured in different ways, each providing distinct benefits to lenders and debtors. Loans, for example, only require interest payments for a given period of time before the principal balance of the loan expires. Since a large portion of the funding expires at one time, towards the end of the loan period, balloon or balloon loans are very risky for lenders. It is just too easy for borrowers to limp along with interest payments and then weaken when debt starts to come.

Limit risks and help the borrowers’ budget for payments; Mortgages, automobile financing and other large loans are amortized or spread over the long-term repayment period. Depreciated payments are associated with the original amount borrowed or the principal amount. The amount to be refunded is broken down into manageable pieces, due to each billing period. Interest is then added to each amortized principle payment, including the total payment required for each billing period.

Interest and principal amortization operate according to different schedules, so additional measures are needed to keep the payments amounts in balance throughout the life of a loan. Advance payments on mortgages and other installment loans, for example, include higher interest rates than those nearing the end of the life of a loan. As final payments approach, the amount of each payment applied to the initial capital balance increases, while the amount of interest charged in each billing cycle decreases. The payments remain the same, they are simply divided differently.

The depreciation schedule of a car uses data such as the amount of the down payment, the loan term and the interest rate to help you determine exactly what your car payments are or will be. Interest is expressed as an annual percentage (APR) to be applied to the balance of the original loan. Keeping the other terms equal, it’s easy to see how the APR influences the payment of each month. Depreciation calculations also use the type of payment you make to determine your automobile loan write-down. Monthly payments, for example, provide a set of payment obligations, while bi-weekly payments significantly change the structure of repayment schedules.

Once created, amortization plans remain true until one or more of the variables used to create them change.

Example of depreciation

Example of depreciation

Here is an example of amortization for a loan with the following characteristics:

  • Amount of the loan: 27 000,00 €
  • Interest rate: 4.00%
  • Payment interval: monthly
  • Loan duration: 6 years
  • Sales tax: 0
  • Down payment: 0
  • Resumption: 0

This table is provided for information purposes only. Please use the calculator above to create a printable version of the amortization schedule for your loan.

Payment Amount Main Interest Balanced
1 $ 422.42 $ 332.42 € 90.00 $ 26,667.58
2 $ 422.42 $ 333.53 $ 88.89 € 26,334.05
3 $ 422.42 $ 334.64 $ 87.78 $ 25,999.41
4 $ 422.42 $ 335.76 $ 86.66 $ 25,663.65
5 $ 422.42 $ 336.87 $ 85.55 $ 25,326.78
6 $ 422.42 € 338.00 $ 84.42 $ 24,988.78
7 $ 422.42 $ 339.12 $ 83.30 $ 24,649.66
8 $ 422.42 $ 340.25 $ 82.17 $ 24,309.41
9 $ 422.42 $ 341.39 $ 81.03 $ 23,968.02
ten $ 422.42 $ 342.53 $ 79.89 $ 23,625.49
11 $ 422.42 $ 343.67 $ 78.75 $ 23,281.82
12 $ 422.42 $ 344.81 $ 77.61 $ 22,937.01
Year 1   € 4,062.99 € 1,006.05 $ 22,937.01
13 $ 422.42 $ 345.96 $ 76.46 $ 22,591.05
14 $ 422.42 $ 347.12 $ 75.30 $ 22,243.93
15 $ 422.42 $ 348.27 $ 74.15 $ 21,895.66
16 $ 422.42 $ 349.43 $ 72.99 $ 21,546.23
17 $ 422.42 € 350.60 $ 71.82 $ 21,196.63
18 $ 422.42 $ 351.77 $ 70.65 $ 20,843.86
19 $ 422.42 $ 352.94 $ 69.48 $ 20,490.92
20 $ 422.42 $ 354.12 $ 68.30 20 € 136.80
21 $ 422.42 $ 355.30 $ 67.12 19 781,50 €
22 $ 422.42 $ 356.48 $ 65.94 $ 19,425.02
23 $ 422.42 $ 357.67 $ 64.75 $ 19,067.35
24 $ 422.42 $ 358.86 $ 63.56 $ 18,708.49
2nd year   $ 4,228.52 € 840.52 $ 18,708.49
25 $ 422.42 $ 360.06 $ 62.36 18 348,43 €
26 $ 422.42 $ 361.26 $ 61.16 $ 17,987.17
27 $ 422.42 $ 362.46 $ 59.96 $ 17,624.71
28 $ 422.42 $ 363.67 $ 58.75 $ 17,261.04
29 $ 422.42 $ 364.88 $ 57.54 € 16,896.16
30 $ 422.42 € 366.10 $ 56.32 16 € 530.06
31 $ 422.42 $ 367.32 $ 55.10 16 162,74 €
32 $ 422.42 $ 368.54 $ 53.88 $ 15,794.20
33 $ 422.42 $ 369.77 $ 52.65 15,424.43 €
34 $ 422.42 $ 371.01 $ 51.41 $ 15,053.42
35 $ 422.42 $ 372.24 $ 50.18 € 14,681.18
36 $ 422.42 $ 373.48 $ 48.94 14,307.70 €
3rd year   $ 4,400.79 $ 668.25 14,307.70 €
37 $ 422.42 $ 374.73 $ 47.69 $ 13,932.97
38 $ 422.42 $ 375.98 $ 46.44 13,556.99 €
39 $ 422.42 $ 377.23 $ 45.19 $ 13,179.76
40 $ 422.42 $ 378.49 $ 43.93 $ 12,801.27
41 $ 422.42 $ 379.75 $ 42.67 $ 12,421.52
42 $ 422.42 $ 381.01 $ 41.41 € 12,040.51
43 $ 422.42 $ 382.28 $ 40.14 $ 11,658.23
44 $ 422.42 $ 383.56 $ 38.86 $ 11,274.67
45 $ 422.42 $ 384.84 $ 37.58 € 10,889.83
46 $ 422.42 $ 386.12 $ 36.30 $ 10,503.71
47 $ 422.42 $ 387.41 $ 35.01 10 116.30 €
48 $ 422.42 $ 388.70 $ 33.72 € 9,727.60
4th year   € 4,580.10 $ 488.94 € 9,727.60
49 $ 422.42 $ 389.99 $ 32.43 € 9,337.61
50 $ 422.42 $ 391.29 $ 31.13 € 8,946.32
51 $ 422.42 € 392.60 $ 29.82 € 8,553.72
52 $ 422.42 $ 393.91 $ 28.51 € 8,159.81
53 $ 422.42 $ 395.22 $ 27.20 $ 7,764.59
54 $ 422.42 $ 396.54 $ 25.88 € 7,368.05
55 $ 422.42 $ 397.86 $ 24.56 € 6,970.19
56 $ 422.42 $ 399.19 $ 23.23 € 6,571.00
57 $ 422.42 $ 400.52 $ 21.90 $ 6,170.48
58 $ 422.42 $ 401.85 $ 20.57 $ 5,768.63
59 $ 422.42 $ 403.19 $ 19.23 $ 5,365.44
60 $ 422.42 $ 404.54 $ 17.88 € 4,960.90
5th year   € 4,766.70 $ 302.34 € 4,960.90
61 $ 422.42 $ 405.88 $ 16.54 € 4,555.02
62 $ 422.42 $ 407.24 $ 15.18 $ 4,147.78
63 $ 422.42 $ 408.59 $ 13.83 $ 3,739.19
64 $ 422.42 $ 409.96 $ 12.46 $ 3,329.23
65 $ 422.42 $ 411.32 $ 11.10 € 2,917.91
66 $ 422.42 $ 412.69 $ 9.73 $ 2,505.22
67 $ 422.42 $ 414.07 $ 8.35 € 2,091.15
68 $ 422.42 $ 415.45 $ 6.97 € 1,675.70
69 $ 422.42 $ 416.83 $ 5.59 $ 1,258.87
70 $ 422.42 $ 418.22 $ 4.20 € 840.65
71 $ 422.42 $ 419.62 € 2.80 $ 421.03
72 $ 422.43 $ 421.03 $ 1.40 0,00 €
Year 6   € 4,960.90 $ 108.15 0,00 €
final sum   € 27,000.00 € 3,414.25