Amortization calculator | Calculate Your Payments Easily
Use our Amortization Calculator to determine loan payments and generate an amortization schedule. Enter loan amount, interest rate, and term to view monthly payments, total interest, and remaining balance. Suitable for mortgages and car loans.
What Is an Amortization Calculator?
Calculate your loan payment schedule with a detailed breakdown of principal and interest payments over time.
What Is an Amortization Calculator?
An amortization calculator shows how each loan payment is split between interest and principal across the full term. Early payments are mostly interest; later payments are mostly principal, until the balance reaches zero.
Amortization Formula
Payment M = P × [ r(1 + r)ⁿ ] ÷ [ (1 + r)ⁿ − 1 ]
Each period: Interest = balance × r, Principal = M − Interest
Example: $200,000 at 6% for 30 years → M ≈ $1,199/month. First payment: interest = 200,000 × 0.005 = $1,000, principal = $199 — so the balance barely moves at first.
Understanding Amortization
- Early payments go mostly to interest
- Extra payments reduce principal faster
- Interest is calculated on remaining balance
- Payment amount stays constant
- Principal portion increases over time
Smart Loan Tips
- Make extra payments to reduce total interest
- Consider bi-weekly payments
- Round up your payments
- Make one extra payment annually
- Check for prepayment penalties
