Debt107 · Module I · Lesson 02 of 9
Interactive · 20 min

Amortization, in detail

A schedule that shows where each dollar of a payment goes.

Interactive

An amortization calculator that shows the schedule of any installment loan month by month. The Scholar enters principal, rate, and term; the model produces the schedule and highlights how much of each payment goes to interest versus principal in each period.

Parameters

  • Principal, annual rate, term in months.
  • Optional additional monthly principal payment.
  • Optional lump-sum prepayment at a specified month.

Expected

A completed schedule. The Scholar writes a paragraph on what an additional $200 per month toward principal would save in total interest and shorten in term for their real mortgage or auto loan.

Interactive

A working model the Scholar operates to build intuition.