Loan Amortization Calculator
This amortization calculator works on any fixed-rate loan. Enter the amount, rate, and term to get your monthly payment and a complete schedule showing exactly how each payment is split between principal and interest.
Loan Details
Balloon Loan
Amortization period differs from loan term — remaining balance due at end
Extra Payments — optional, reduces interest & payoff time
How Loan Amortization Works
Amortization is the process of paying off a loan through regular scheduled payments over time. Each payment covers both the accrued interest and a portion of the principal balance.
Early in the loan, most of each payment goes toward interest because the balance is high. As you pay down the principal, the interest portion shrinks and more of each payment reduces the balance. This is why paying a little extra each month — especially early on — can save a significant amount in total interest.
Monthly Payment Formula
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]Where P = principal, r = monthly interest rate, n = number of payments
Tip: The total interest you pay is heavily influenced by the loan term. A 15-year mortgage typically costs significantly less in total interest than a 30-year mortgage on the same amount, even if the monthly payment is higher.
Related Calculators
- Mortgage Calculator — adds property tax, insurance, and PMI to the amortization above
- Car Loan Calculator — the same schedule with sales tax and trade-in built in
- Debt Snowball Calculator — schedule several loans at once instead of one