Amortization Rate?

I am looking for how to calculate amortization rate on a model.  I have been given interest rate, interest free period, amortization term, but also amortization rate. 

How am I supposed to calculate the loan payments? 

Is it 3.5%(amort rate) of the loan balance monthly, and then calculating interest monthly on the reduced loan balance.  Or is it a fixed payment from original principal loan balance?

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Comments (6)

Jul 29, 2021 - 1:22pm

Hmm - there are constant amortizing mortgages where you would pay a flat amount towards principal every month plus interest on the opening balance each month, but haven't seen it with a rate-based amortization. Probably a similar concept.

Aug 1, 2021 - 9:26pm

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