An amortization calculator shows you exactly how every loan payment is split between principal and interest, month by month, until the loan is paid off. Enter your loan amount, interest rate and term below to get your monthly payment, total interest, payoff date and a complete amortization schedule.
| # | Date | Payment | Principal | Interest | Balance |
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What Is an Amortization Calculator?
An amortization calculator is a tool that breaks a loan into a fixed schedule of payments. Amortization means paying off a debt over time with regular payments. Each payment covers the interest charged that month plus part of the principal — the amount you originally borrowed.
Early in the loan, most of each payment goes toward interest. Over time that balance flips, and most of each payment goes toward principal. An amortization schedule makes this shift visible, which is why lenders in the United States are required to disclose it on mortgages.
This calculator works for a mortgage, a car loan, a personal loan or any other fixed-rate installment loan. If you only need the monthly payment for a home loan, our Mortgage Calculator goes deeper on home price, down payment and taxes. For a general payment estimate on any loan, use the Loan Calculator.
How to Use This Amortization Calculator
- Loan amount: the total you are borrowing (for a mortgage, the home price minus your down payment).
- Annual interest rate: the yearly rate on the loan, for example 6.5%.
- Loan term: how long you have to repay — 30 years and 15 years are the most common mortgage terms; car loans are usually 3–6 years.
- Extra monthly payment (optional): any amount you plan to pay on top of the required payment. Watch how much interest it saves and how much sooner the loan ends.
- First payment month: used to date each row of the schedule and calculate your payoff date.
Click Calculate Amortization and you will see your monthly payment, total interest, total cost, payoff date and the full month-by-month schedule.
The Amortization Formula
The monthly payment on an amortizing loan is calculated with this formula:
M = P × r(1 + r)n ÷ ((1 + r)n − 1)
- M = monthly payment
- P = principal (loan amount)
- r = monthly interest rate (annual rate ÷ 12)
- n = number of payments (term in years × 12)
Each month, interest is charged on the remaining balance: interest = balance × r. The rest of the payment reduces the balance. That is the same compounding principle behind our Compound Interest Calculator — except here it works against you instead of for you.
Amortization Calculator Example
Suppose you borrow $350,000 at 6.5% for 30 years:
- Monthly payment: $2,212.24
- First payment: about $1,895.83 goes to interest and only $316.41 to principal
- Total interest over 30 years: about $446,406 — more than the loan itself
- Adding just $200 extra per month cuts roughly 5 years off the loan and saves tens of thousands of dollars in interest
Try the same numbers in the calculator above and scroll the schedule: you can see the exact month where your payment starts going mostly to principal.
Amortization for a Mortgage vs. a Car Loan
The math is identical — only the term and rate change. A mortgage amortization calculator usually means a 15 or 30-year schedule where the interest cost is very large, so extra payments have a dramatic effect. A car loan amortization calculator covers a shorter 36–72 month schedule; our Car Payment Calculator estimates that payment directly. In both cases, the schedule tells you the one number a payment quote hides: the total interest you will actually pay.
How Extra Payments Change Your Schedule
Every extra dollar goes straight to principal, so every future month charges interest on a smaller balance. The effect is strongest early in the loan. Two common strategies:
- Fixed extra monthly payment: simple and predictable — enter it above and compare the payoff date and total interest.
- One extra payment per year: equivalent to paying a little extra each month; on a 30-year mortgage it typically shortens the loan by 4–6 years.
Before sending extra money, check your loan has no prepayment penalty and tell your lender to apply extras to principal, not to future interest.
Related Tools
- Mortgage Calculator — monthly payment with down payment, taxes and insurance
- Loan Calculator — payment estimate for any loan
- Car Payment Calculator — auto loan payments
- Compound Interest Calculator — how interest grows on savings
Browse all loan, mortgage and money tools in our Finance Calculators collection.
Frequently Asked Questions
What is an amortization schedule?
It is a table of every payment over the life of a loan, showing how much goes to principal, how much to interest, and the remaining balance after each payment.
Why is so much of my first payment interest?
Interest is charged on the outstanding balance, which is at its highest at the start. As the balance falls, the interest portion of each payment falls with it.
Does this amortization calculator work for car loans?
Yes. Enter the car loan amount, rate and a term of 3–6 years. The same formula applies to any fixed-rate installment loan.
What is a balloon payment?
Some loans require one large final payment. This calculator assumes fully amortizing payments; if your loan has a balloon, the schedule is accurate only up to the balloon date.
How can I pay my loan off faster?
Pay extra toward principal each month, make one extra payment a year, or refinance to a shorter term. Use the extra payment field above to see the exact savings before you commit.
Is the amortization calculator free?
Yes — it is completely free, needs no sign-up, and runs instantly in your browser.