Amortization Schedule Canada
The term "amortization" is refers to the process of distributing the cost of an asset over time. In other words, it refers to the repayment of a loan principal such as a mortgage or a vehicle.
When it comes to keep tracking of where you are in the amortization process when you have a loan, mortgage lenders have developed a schedule that allows the borrower to see where every payment is distributed.
What is an amortization schedule?
An amortization schedule is a table that lists each mortgage payment over time depending on your amortization period. A portion of each payment is applied towards both the principal balance and interest. The amortization schedule goes into detail about how much will go towards each factor after every payment.
Your initial monthly payment towards your mortgage will be subtracted by the interest owed. The remaining balance is what's known as the principal balance. This amount will be taken off the overall balance. As more and more principal is paid, the less interest there will be attached.
While repayment continues, the interest will decline and the principal payment will increase. In other words, the amount you pay on the mortgage will not be affected by interest.
Your total principal paid will be the amount of your entire mortgage while your total interest paid is just a portion of what was taken off your principal balance.
How do you calculate amortization?
Our amortization schedule Canada calculator will show you the following:
- How much principal and interest are paid in any particular payment
- How much total principal and interest have been paid at a particular date
- How much principal you owe on the mortgage at a specified date
- How much time you can afford to cut off at the end of the mortgage by making one or more extra payments
Utilizing the mortgage amortization calculator can also help you determine:
- How much principal you owe now or in the future
- How much extra you need to pay every month to repay the mortgage in less time than your original amortization period
- How much interest you have paid over the lifespan of the mortgage or during a particular year
- How much equity you have
Amortization Schedule Calculator