What is a Principal Calculator?
If you have an active loan and are wondering how much principal amount you have already paid off or how much of the principal amount remains to be paid, you can use the Principal Calculator. This is a free tool available online for your convenience. By entering the required information the calculator will give you the breakdown of the Principal amount balance that remains due.
When you take out a mortgage loan, it is subject to interest rates. The interest rates will be a percentage of the loan amount that is included in your monthly payments. The longer your loan term the higher your interest rate charges will be. When you start repayment of your loan amount, the payment is mostly used to pay off the interest rates first. As you continue to keep making payments and the interest goes down, the majority of the payment starts going towards your balance amount. When it comes to loan payments your balance principal amount gets covered at a later period. Using a principal calculator you can assess how many payments are due until your loan is completed.
What information is required for Principal Calculators?
To use the calculator you need to input the following information:
Loan Amount: Enter the total amount of the loan.
Interest Rate: Enter the interest rate that applies to your loan.
Payments made: Enter the number of payments you have made. You can also think of this as the number of months that you have consecutively made repayments towards your loan.
Loan Length: This is the number of years on your loan place for repayment of the loan.