Loan Amortization Calculator

Generate a detailed amortization schedule showing how each payment breaks down into principal and interest over the life of your loan.

Loan Details

$
%
yrs

Enter your loan details and click "Calculate" to generate the amortization schedule.

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Pro Tip

Print or save your amortization schedule and track your actual payments against it. If you make extra payments, recalculate to see how much time and interest you are saving.

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Understanding Loan Amortization

Amortization is the process of spreading a loan into a series of fixed payments over time. Each payment covers both the interest cost and a portion of the principal balance. An amortization schedule shows the exact breakdown of every payment throughout the loan term.

In the early years of a standard amortizing loan, the majority of each payment goes toward interest because the outstanding balance is large. Over time, as the balance decreases, more of each payment goes toward reducing the principal. This is why extra payments early in the loan have the greatest impact.

Amortization schedules are essential tools for understanding the true cost of a loan. They reveal how much interest you will pay over the life of the loan and show how quickly (or slowly) you are building equity. Lenders are required to provide amortization schedules, but generating your own helps with financial planning.

Monthly Payment Formula

M = P × [r(1+r)n] / [(1+r)n − 1]

Where:

M = Monthly payment

P = Loan principal

r = Monthly interest rate (annual / 12)

n = Total number of payments

Example

$200,000 loan at 6.5% for 30 years:

  • • Monthly rate: 6.5% / 12 = 0.5417%
  • • Number of payments: 30 x 12 = 360
  • • Monthly payment: $1,264.14
  • • Total paid: $455,089
  • • Total interest: $255,089

Frequently Asked Questions

What is an amortization schedule?
An amortization schedule is a table showing each loan payment broken down into principal and interest components, along with the remaining balance after each payment. It covers every payment from the first to the last.
Why is so much interest charged at the beginning?
Interest is calculated on the outstanding balance. Since the balance is highest at the start, the interest charge is largest. As you pay down the principal, less interest accrues each month and more of your payment goes to principal.
How do extra payments affect the schedule?
Extra payments reduce the principal faster, which reduces future interest charges. This can significantly shorten the loan term and save thousands in interest. Even small extra amounts make a meaningful difference over time.
What is negative amortization?
Negative amortization occurs when your payment is less than the interest due, causing the loan balance to increase over time. This can happen with some adjustable-rate mortgages or payment-option loans.