Amortization Schedule Calculator: How to Manage Your Loan Repayment 

November 4, 2021


The idea of loans has made it easy for many people to own some significant properties or finance a business. But repaying a loan seems like an arduous task to a substantial number of people. And it's most likely because they lack adequate management skills. Find out how to calculate your payment.

If you've obtained multiple loans for different reasons, you'll want to have an amortization schedule to keep track of your loans, the amount you've paid, and what's left for you to pay. Besides, an amortization schedule helps you with the details of each loan you have to repay.

In a word, an amortization schedule is a complete list of your periodic loan payments. The table shows the principal and interest that comprise each loan until it's paid off at the designated time. In amortization schedules, each periodic payment is the same amount for each period, which means if you're to repay $12,000 over 12 months and the starting repayment amount is $1,000, then it's $1,000 you'll remit to the lender every pay period until you pay off the loan.

Meanwhile, early in the loan repayment, most of the payment you'll make is what you owe in interest; later in the schedule, the money you pay will start to cover the principal. And the last line on an amortization schedule shows your total principal and interest payments for the loan term.

Therefore, if you're the type that takes on multiple loans or you already have numerous periodic loans to repay, it'd be best if you considered employing an amortization schedule to track your loans. Besides, an amortization schedule calculator will help you to estimate your monthly loan repayments. That way, you'd consider if you can finance the loan repayment or not.

Now that you know the relevance of the amortization schedule, as a borrower, learning how to better manage and finance your loan repayments will be a plus to you. It's not good to delay your loan repayment because it can damage your credit score. To avoid such a situation, you'd want to adopt the following techniques to manage your loans:

Borrow for the Right Reasons

You'd want to take a seat and re-think the reasons why you want to take out a loan. Getting a loan for a car or a house is understandable and wise. But getting a loan for a business that's not well-thought may go south, especially if you plan to finance the loan with the business' proceeds. What if the venture fails?

But if you're sure of what you're doing, you'll also want to learn discipline. If you need $50,000 for a business – even if you're eligible for more – stick with the amount you need. Remember, the higher the capital, the higher the interest.

Know Your Payment Capability

Knowing your loan repayment capacity is one of the vital things that will ease your loan repayment process. And you'll want to get an amortization schedule calculator for this process. The amortization schedule calculator will help you estimate the periodic payments you'll make on a particular loan.

That way, you'll know the interest rate and the monthly payments you'll make on a loan before you take it. And this will help you in your decision-making process. For example, if you are looking to buy a house and want to take a mortgage, it'd be best to obtain a loan below the maximum amount you can qualify for and have a home loan amortization schedule to follow up with your loan repayment.

Create a Budget

Following the previous steps, the next process in line is to create a budget. If you're going to keep up with your loan repayments, you'd want to live by a budget to avoid missing a payment. Trying to manage a loan without a budget can put you in a state of confusion and vulnerability.

You'd want to know how every dollar is spent, and that's why you should consider creating a budget. On a side note, you'd also find it helpful if you designed a printable amortization schedule. Consider printing it out, and check each payment off once made. It'll give you some feeling of "I'm almost there" until you complete your loan repayment.

Repay High-Interest Loans First

If you have multiple loans you're repaying, one of the best things to do is to make a list of all the loans and use the amortization schedule calculator to check the ones with the high interest. You'd want to arrange the loans accordingly – highest interest to the lowest interest.

Your mortgage amortization schedule will likely sit at the bottom of your list as home loans usually have low-interest rates while offering you tax benefits as well. And considering that the value of your home will increase over time, you'd want to focus on repaying loans with higher interest rates before moving to those with low-interest rates.

Pay Above Your Minimum 

Many expert borrowers know the early initial payment strategy because it gives them more time that spreads over the rest of the payment period. Paying above the minimum is also related to the early initial payment technique.

Paying a little extra each month helps you stay ahead of your loan term and provides you with some other financial benefits. One certain thing is that you'll reduce your entire loan repayment plan when you pay a little extra every month.

For instance, if your mortgage calculator amortization table shows you'll pay your home loan over 30 years, you can reduce to repayment frame to about 26 years if you're religious with paying a little extra every month. And you'll be clear of that debt four years before the stipulated time – how refreshing.

Consolidate Your Loans

If you're looking for a significant way to simplify repayments on your multiple loans, you should consider consolidation. Debt consolidation is when you take a single, large loan that covers the repayment of all your other loans. So, instead of repaying multiple loans at different interest rates, you'll be making payments to one source.

You can decide to employ the loan amortization calculator with schedule to know how you'll repay the loan, the interest rate, and the payment period. The information you get from your calculations will help you see if you're making a decision that will favor your current financial situation or not.


One of the virtues that will help you in repaying loans is discipline. Managing multiple loans can be stress-free and straightforward – that's when you've understood the working process. It's good to take a loan towards a good and promising cause like real estate investing, but you'll want to avoid missing payments by all means. And the techniques above will put you on a better loan management path if effectively utilized.


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