🆓 Free · No Signup

Amortization Calculator

Instantly calculate your loan or mortgage payment schedule with charts, tables and extra payment analysis.

Loan Details

$
%
YRS
Years Months
$
$
$
📊

Enter your loan details and press Calculate to see your amortization schedule.

Understanding Amortization

Everything you need to know about loan amortization, schedules and how to save money on interest.

What Is an Amortization Calculator?

An amortization calculator shows you exactly how your loan payments are structured over time. It breaks down each payment into the amount that reduces your loan balance (principal) versus the cost of borrowing (interest).

With our free amortization calculator, you can instantly see your complete amortization schedule, total interest cost and the impact of making extra payments — all with visual charts.

How Amortization Works

In the early years of a loan, the majority of each payment goes toward interest. As the principal decreases, the interest portion shrinks — and more of each payment reduces your balance. This "front-loading" of interest is what amortization describes.

For example, on a $300,000 mortgage at 6.5% for 30 years, your first payment of $1,896 includes roughly $1,625 in interest and only $271 in principal. By year 20, most of each payment goes to principal.

The Amortization Formula

The monthly payment is calculated using the standard amortization formula:

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Where: M = monthly payment · P = principal loan amount · r = monthly interest rate (annual rate ÷ 12) · n = total number of payments (years × 12)

How to Read an Amortization Schedule

An amortization table lists every payment for the life of your loan. Each row shows: the payment number, the interest paid, the principal paid and the remaining loan balance. Reading the schedule helps you understand your true cost of borrowing and plan your finances precisely.

Our calculator generates both monthly and annual views and you can download the full schedule as a CSV for use in a spreadsheet.

Save Money With Extra Payments

Making additional principal payments is one of the most powerful ways to reduce your total interest and pay off your loan early. Even a small extra monthly payment has a compounding effect:

On a $300,000 loan at 6.5% for 30 years, adding just $200/month to your payment can save over $60,000 in interest and shave more than 6 years off your loan. Use our extra payment tool above to model your own scenario.

Mortgage vs. Other Loan Types

Our amortization calculator works for any fixed-rate loan: mortgages, auto loans, student loans, personal loans and business loans. Simply enter your specific loan amount, interest rate and term.

30-yr Mortgage 15-yr Mortgage Auto Loan Personal Loan Student Loan

Frequently Asked Questions

Common questions about amortization calculators and loan repayment.

  • An amortization calculator is used to determine your monthly loan payment and generate a complete payment schedule. It tells you exactly how much of each payment goes toward reducing your principal versus paying interest and shows you the total interest you'll pay over the life of the loan. It's useful for mortgages, car loans, student loans and any other fixed-rate installment loan.
  • Amortization is calculated using the formula M = P[r(1+r)ⁿ]/[(1+r)ⁿ-1], where P is the loan principal, r is the monthly interest rate (annual rate divided by 12) and n is the total number of payments. Each month, interest is charged on the remaining balance and the rest of your fixed payment reduces the principal. This continues until the balance reaches zero.
  • An amortization schedule is a complete table of every loan payment from start to finish. For each payment period (usually monthly), it shows: the payment amount, the interest portion, the principal portion and the remaining loan balance. It reveals how your debt decreases over time and how much total interest you'll pay.
  • Yes, significantly. Extra payments go directly to the principal, which reduces the balance that future interest is calculated on. This has a compounding effect — the earlier you make extra payments, the more you save. Even an extra $100/month on a 30-year mortgage can save tens of thousands of dollars in interest and cut years off your loan term. Use our Extra Payments tool above to model exactly how much you could save.
  • It depends on your financial goals. A 15-year mortgage has higher monthly payments but far less total interest - often 50-60% less. A 30-year mortgage has lower monthly payments, offering more cash flow flexibility, but you'll pay significantly more interest over the life of the loan. Use our calculator with both presets to compare the exact numbers for your situation.
  • Absolutely. Our amortization calculator works for any fixed-rate installment loan, including auto loans (typically 36-84 months), personal loans (12-84 months), student loans, business loans and home equity loans. Just enter your loan amount, rate and term - the math is the same regardless of loan type.
  • No - this calculator focuses on the principal and interest portion of your payment only, which is the core amortization calculation. Your actual monthly mortgage payment may be higher because it typically includes property taxes, homeowners insurance and possibly private mortgage insurance (PMI), which are held in escrow. These vary by location and lender.
  • The most effective strategies are: (1) Make extra monthly payments toward the principal. (2) Make one extra full payment per year. (3) Refinance to a shorter term when rates are favorable. (4) Apply windfalls like tax refunds or bonuses as lump-sum principal payments. Use the Extra Payments feature in our calculator to see exactly how much time and money each strategy saves.

Amortization Glossary

Key terms you'll see in your amortization schedule explained clearly.

Principal

The original amount of money borrowed, or the remaining unpaid balance of the loan. Each payment you make reduces the principal (along with paying interest). Paying down principal faster through extra payments reduces the total interest you owe.

Interest Rate vs. APR

The interest rate is the annual cost of borrowing the principal. The APR (Annual Percentage Rate) includes the interest rate plus lender fees, making it the true cost of the loan. Our calculator uses the interest rate for amortization schedule calculations.

Loan Term

The length of time over which you repay the loan, typically expressed in years. Common terms are 30 years and 15 years for mortgages and 36-84 months for auto loans. A shorter term means higher monthly payments but far less total interest paid.

Amortization Period vs. Loan Term

For most US mortgages, the amortization period and loan term are the same. However, some loans (especially commercial) have shorter terms with balloon payments due at end of term, based on a longer amortization period.