How to Calculate an Amortization Schedule
- 1). Draw five columns on a piece of paper. Label the columns "Payment Number," "Payment," "Interest Paid," "Principal Paid, " and "Principal Remaining" respectively.
- 2). Write from "1" to the number of payments on the loan under the "Payment Number" column. Write the payment amount under each payment row in the "Payment" column.
- 3). Multiply the interest rate per month by the remaining loan principal. Write the amount under "Interest Paid."
- 4). Subtract the number in the "Interest Paid" column from the number in the "Payment" column. Write this number under "Principal Paid."
- 5). Subtract "Principal Paid" from "Remaining Principal" and put the number in the "Remaining Principal" column. For the first payment, the remaining principal is the amount of the loan.
- 6). Repeat these steps until "Remaining Principal" column equals 0.