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Loan Amortization Calculator

Generate a detailed loan amortization schedule.

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Inputs

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Years

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Results

Scheduled Monthly Payment
Total Interest Paid$2,645.48

Annual Schedule

Open this detailed result when you need it.

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Assumptions

  • This schedule assumes a fixed rate and regular, on-time payments across the full term.
  • The model does not include escrow, taxes, insurance, or extra principal payments.
  • Annual output groups payment activity by year rather than showing a full monthly statement.

Sensitivity preview

Loan Amount -10%: Scheduled Monthly Payment $339.68

Loan Amount Current: Scheduled Monthly Payment $377.42

Loan Amount +10%: Scheduled Monthly Payment $415.17

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About this Amortization Calculator

Amortization is the process of paying off a debt over time in regular installments of interest and principal. In the beginning, your payments mostly cover interest. Towards the end, they mostly cover principal. This tool visualizes that shift.

Who this calculator is for

  • Borrowers who want to see how a loan balance changes over time.
  • Home buyers comparing long-term interest cost before choosing a term.
  • Anyone deciding whether extra payments or refinancing could reduce interest.

When to use it

  • Use this calculator when you want to see where each year of payment goes: interest versus principal.
  • Review amortization before choosing between shorter and longer loan terms.
  • Pair it with mortgage or refinance scenarios when you want to understand the cost behind the monthly payment.

How to use this calculator

  1. Enter the Loan Amount.
  2. Enter the Interest Rate and Term.
  3. Set the Start Date to align the schedule with calendar years.
  4. View the Annual Schedule below.

Key assumptions

  • This schedule assumes a fixed rate and regular, on-time payments across the full term.
  • The model does not include escrow, taxes, insurance, or extra principal payments.
  • Annual output groups payment activity by year rather than showing a full monthly statement.

Accuracy and testing

Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.

View accuracy page

How this calculator works

Each month, the interest is calculated on the *current* balance (Balance * Rate / 12). The rest of your fixed monthly payment goes to reducing the principal. As the balance drops, interest drops, and principal repayment accelerates.

Inputs explained

Loan Amount

The initial principal balance of the loan.

Loan Term

The total lifespan of the loan (e.g., 30 years for a standard mortgage).

Understanding your results

The Total Interest is the cost of the loan. The Schedule shows your equity building up year by year. Notice how slow the balance decreases in the first few years.

Example scenarios

30-Year Mortgage

For a $200k loan at 6%, you pay ~$1,200/mo. In Year 1, ~$1,000/mo is interest. By Year 20, the majority is principal.

5-Year Auto Loan

Amortization happens much faster. You build equity quickly.

Key Features

  • Annual Breakdown
  • Total Interest Calculation
  • Fixed Rate Support

Things to Keep in Mind

Assumes a fixed interest rate. Does not support Adjustable Rate Mortgages (ARMs) or interest-only periods.

Tips & Best Practices

  • Making even one extra payment a year (applied to principal) can shave years off your mortgage amortization.
  • Use this schedule to calculate how much interest you can deduct on your taxes for a given year.

Glossary of Terms

Principal
The amount of money borrowed that must be repaid.
Interest
The charge for the privilege of borrowing money.
Equity
The portion of the asset you own (Value - Remaining Balance).

Frequently Asked Questions

What is amortization?
It is the technique of paying off a loan in regular installments over a period of time. Each payment covers both interest and principal.
Why is my balance going down so slowly?
In the early years of a long-term loan (like a 30-year mortgage), the interest portion is high because the balance is high. Most of your payment goes to the bank as profit, not to paying down debt.