How to amortize a loan

Repaying a loan is simply a gradual return of the requested amount to the financial institution plus the respective interest, which is no more than the price the entity charges for leaving the money. There are three different types of amortization: French, German and American being the first used in Spain.

Finding the repayment installments of a personal loan can be a difficult task, even if you have the necessary financial knowledge, due to the complexity of the required formulas. Luckily, on the Internet you can find online tools that will help you with these calculations: loan calculators and loan simulators being the first ones the most useful in terms of amortization since not only do you find the amortization fee but the amortization table complete, that is, how much you will pay each month.

You will need to:
  • The amount of the loan
  • Return period
  • Loan interest rate
  • An online loan calculator
Steps to follow:


Find out the following details of the loan you wish to request: amount, repayment term and interest rate.


Search the Internet for a loan calculator.


Enter the loan information (amount, repayment term and interest rate) in the calculator.


If the loan has a period of initial capital deficiency and the calculator you chose allows you to include this information. Enter it where it corresponds.


There are advanced calculators that allow you to indicate early repayments of the loan. In case you plan to do them, enter the information requested.


There are advanced calculators that allow you to introduce possible future scenarios for the interest rate, in case this is variable. If this is your case, enter the information requested.


Click on the "calculate" button to find the amortization table.

  • Have all the loan information before starting the operation.