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- Works out the monthly payment on any fixed-rate loan.
- Shows the total interest and total amount paid.
- Gives a year-by-year schedule of principal, interest and balance.
- Shows how much extra monthly payments save in interest and time.
How to use the amortization calculator
Enter the loan amount
For example $250,000.
Enter the interest rate and term
For example 6.5% for 30 years.
Add an extra monthly payment (optional)
To see how much faster you pay it off.
Read the schedule
Principal, interest and balance for each year.
How amortization works
With an amortizing loan, every monthly payment is the same, but the split changes over time. Early payments are mostly interest, because the balance is high. As the balance falls, more of each payment goes to principal. Extra payments go straight to principal, which cuts both the interest and the term.
Amortization formulas
Monthly payment = P × r ÷ (1 − (1 + r)^−n)
Interest each month = balance × r
Principal each month = payment − interest
P is the loan amount, r the monthly rate (yearly rate ÷ 12) and n the number of payments.
Example 1: $250,000 at 6.5% for 30 years
A typical mortgage.
- Monthly payment $1,580.17
- First payment $1,354.17 interest, $226.00 principal
- Total interest $318,861.22
Example 2: adding $200 a month
The same loan with $200 extra each month.
- Payoff time 22 years 1 month
- Total interest $221,243.10
- Interest saved $97,618.12
Example 3: a car loan
$20,000 at 7% for 5 years.
- Monthly payment $396.02
- Total interest $3,761.44
Where amortization schedules help
Mortgages
See how slowly the balance falls in early years.
Car loans
Compare terms and total interest.
Personal and student loans
Plan payoff dates.
Extra payments
See exactly what paying more saves.
Include taxes and insurance with the mortgage calculator, compare loans with the refinance calculator, or plan several debts with the debt snowball calculator.
Amortization calculator FAQ
What is an amortization schedule?
A table showing how each payment is split between interest and principal, and the balance left after each one.
Why do early payments go mostly to interest?
Interest is charged on the balance, which is largest at the start.
What is the monthly payment on $250,000 at 6.5% for 30 years?
$1,580.17 for principal and interest.
How much do extra payments save?
On that loan, $200 extra a month saves about $97,618 in interest and nearly 8 years.
Does this include taxes and insurance?
No. It covers principal and interest only.
What is the difference between amortization and interest-only?
An amortizing payment reduces the balance every month; an interest-only payment does not.