Amortization schedules are methods of scheduling payments, usually with interest, over an extended period of time. These schedules are easily figured using a number of calculators online or a spreadsheet program on your home computer.Understand how amortization worksAmortization includes not just your payment but how that payment is distributed once it reaches the lender. A portion of the payment is applied towards interest, some towards principal and other portions are possibly used to pay insurance premiums, taxes and other necessary fees. Knowing how your payment is distributed among various entities is the most important step to calculating amortization schedules; since these additional fees may leave you wondering why you are paying more than the market price for your product.When you make a large purchase, the paperwork you sign often shows a comprehensive detail of additional fees along with the purchase price of your item, providing a full understanding of what you are paying over time and where that money is going. Reasons for calculating amortization schedulesBy figuring out an amortization schedule you are providing yourself a way to see how your money is applied. Another substantial benefit of an amortization schedule is that it allows you to see alternative payment methods or time frames where you may dedicate extra funds to a bill to pay it off ahead of schedule.Developing an amortization schedule at homeUsing a personal computer and a feature-rich spreadsheet program, such as Excel or Quicken, makes developing an amortization schedule in your home simple and convenient. Reliable spreadsheet programs possess an integrated calculation system for determining payments over time. Factors to consider when building your own amortization schedule are the full payoff amounts of your purchase, payments to principal, payments to interest, escrow payments and your interest rate. Developing a schedule is simple if you have a fixed interest rate but may require consultation with your lender when calculating a rate that is variable.Bankrate.comBankrate.com offers a number of amortization calculators which automatically consider other factors, including additional payments. Though not as accessible or customizable as a spreadsheet, these calculators provide an overall look at your payment schedule and loan span.Developing your own amortization schedule provides a more detailed look at how your money is spent and shows ways in which you may pay your purchases off faster than the expected length of the loan.