Negative Amortization Loan Detector
MathCheck whether a proposed loan payment covers the interest accruing each period, and if not, project how much the balance grows instead of shrinking.
Give it a loan balance, an annual rate, and a proposed monthly payment, and it checks whether that payment actually covers the interest accruing each period. The Loan Calculator and EMI Calculator both assume the payment is sufficient to pay the loan down over its term, but some ARMs and minimum-payment credit lines let you pay less than the interest due, so the unpaid interest gets added back onto the balance instead of the balance shrinking. This tool catches exactly that trap: it reports the shortfall, the minimum payment that would break even, and a month-by-month projection of the growing balance. You can optionally flag the month the balance would cross a cap, like 110% of the original principal, the kind of threshold that forces a recast on some option-ARM loans.
How to use Negative Amortization Loan Detector
- 1.Enter the loan's current balance, annual interest rate, and the monthly payment you're considering.
- 2.Check whether the result flags negative amortization, and if so, read the shortfall and break-even payment.
- 3.Optionally set a balance cap percent (e.g. 110%) to see which projected month the balance would cross it.
Frequently asked questions
Use via API, SDK, or MCP
cURL# Free: 1,000 req/day · Pro: 10,000 req/day
curl -X POST https://api.utilix.tech/v1/tools/negative-amortization-detector \
-H "Authorization: Bearer utx_live_..." \
-H "Content-Type: application/json" \
-d '{"principal":100000,"annualRatePercent":6,"monthlyPayment":400,"projectionMonths":12,"capPercent":110}'Get an API key from your dashboard · Full API docs →