Finance Tools
Amortization Calculator
Calculate loan amortization schedule with monthly payment breakdown. See how much principal and interest you pay each month, total interest paid, and complete payment schedule for mortgages, car loans, and personal loans.
Use Amortization Calculator to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
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About this tool
Calculate your loan amortization schedule instantly with our professional amortization calculator. Whether you're planning a mortgage, auto loan, student loan, or personal loan, our calculator shows you exactly how much you'll pay each month and how your payments are split between principal and interest.
Understanding loan amortization is crucial for financial planning. With amortization, each monthly payment is divided between paying down the principal (the original loan amount) and paying interest charges. Early in the loan, most of your payment goes toward interest. As the loan progresses, more goes toward principal. Our calculator shows this breakdown clearly.
The calculator uses the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1], where M is monthly payment, P is principal, r is monthly interest rate, and n is number of payments. It also calculates total interest paid, total cost of the loan, and can show the impact of extra payments on your loan term and total interest.
Use this calculator to compare different loan scenarios, understand the true cost of borrowing, plan extra payments to pay off debt faster, or simply verify your lender's amortization schedule. All calculations are performed instantly in your browser with complete privacy.
Usage examples
$200,000 30-Year Mortgage at 6.5%
Typical home loan amortization
Monthly Payment: $1,264.14 | Total Interest: $255,089.95 | Total Paid: $455,089.95 | First payment: $183.14 principal, $1,083.33 interest
$30,000 Car Loan for 5 Years at 4.9%
Auto loan with shorter term
Monthly Payment: $564.87 | Total Interest: $3,892.20 | Total Paid: $33,892.20 | Loan paid off in 60 months
$15,000 Personal Loan for 3 Years at 8.5%
Higher rate, shorter term personal loan
Monthly Payment: $473.01 | Total Interest: $2,028.36 | Total Paid: $17,028.36 | Save $525 with $50 extra payment monthly
How to use
- Enter the total loan amount (principal)
- Input the annual interest rate (APR) as a percentage
- Specify the loan term in years
- Optionally enter extra monthly payment to see savings
- Click "Run Tool" to see your monthly payment and complete amortization schedule
- View detailed breakdown of principal, interest, and remaining balance
Benefits
- Accurate monthly payment calculation using industry-standard formula
- Complete amortization schedule showing every payment
- Principal vs interest breakdown for each payment
- See exactly how much interest you'll pay over the loan life
- Calculate savings from extra payments
- Compare different loan scenarios instantly
- Suitable for mortgages, auto loans, student loans, personal loans
- All calculations in your browser - complete privacy
- No registration or personal information required
- Free forever with unlimited calculations
FAQs
What is loan amortization?
Loan amortization is the process of paying off a loan through regular payments over time. Each payment is split between principal (reducing your loan balance) and interest (the cost of borrowing). In a typical amortized loan, you pay more interest early on and more principal later, but your monthly payment stays the same.
How is my monthly payment calculated?
Monthly payment is calculated using the formula: M = P[r(1+r)^n]/[(1+r)^n-1], where P is the loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of monthly payments. For example, a $200,000 loan at 6% APR for 30 years results in a $1,199.10 monthly payment.
Why do I pay more interest at the beginning?
With amortization, interest is calculated on your remaining balance. Early in the loan, your balance is high, so the interest portion is large. As you pay down the principal, your balance decreases, so the interest portion shrinks and more of your payment goes toward principal. The monthly payment stays constant throughout.
How much can I save with extra payments?
Extra payments reduce your principal faster, which saves interest and shortens your loan term. For example, adding $200/month to a $250,000 mortgage at 6.5% over 30 years saves about $82,000 in interest and pays off the loan 8 years earlier. Use our calculator with the "Extra Payment" field to see your specific savings.
What's the difference between APR and interest rate?
The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other costs like origination fees and closing costs. For this calculator, use the interest rate (not APR) if you want to calculate just the interest portion. Most lenders provide both numbers.
Can I use this for a mortgage?
Yes! This calculator works for all types of amortized loans including mortgages, auto loans, student loans, and personal loans. For mortgages, remember that your actual monthly payment may be higher due to property taxes, homeowners insurance, and PMI, which aren't included in the amortization calculation.
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