Amortization Calculator - Complete Loan Payment Schedule
Free amortization calculator to generate detailed payment-by-payment schedules showing principal, interest, and remaining balance for each payment. See year-by-year summaries and how extra payments accelerate payoff
Amortization Calculator
Summary
Amortization Schedule
What is an Amortization Calculator?
An Amortization Calculator is a free financial tool that generates a complete payment-by-payment breakdown of how a loan will be repaid over time. It shows exactly how each monthly payment is split between principal reduction and interest charges, and displays the remaining balance after each payment.
This calculator helps you understand:
- Payment-by-payment breakdown - See every single payment throughout the loan term
- Principal vs interest split - Understand how much of each payment reduces your loan balance
- Year-by-year summaries - View annual totals for principal paid, interest paid, and ending balance
- Extra payment impact - See how additional payments save interest and accelerate payoff
- Total cost of borrowing - Calculate the complete cost including all interest charges
Perfect for mortgages, auto loans, personal loans, student loans, and any other amortizing loan with fixed monthly payments.
For basic monthly loan payment calculations without detailed schedules, check out our Loan Calculator to quickly determine your monthly payment amount and total interest for any loan type.
To explore aggressive payoff strategies with extra payment analysis, explore our Repayment Calculator to see how additional monthly payments can save thousands in interest and shorten your loan term significantly.
For flexible payment frequency options including bi-weekly and weekly schedules, use our Payment Calculator to compare different payment frequencies and find the schedule that fits your budget best.
To calculate auto loan schedules with trade-in and tax considerations, try our Auto Loan Calculator to see complete vehicle financing breakdown including all fees and charges.
For mortgage amortization with property tax and insurance breakdowns, check our Mortgage Calculator to view detailed PITI payment schedules and track home equity building over time.
How Amortization Calculator Works
The calculator uses standard amortization formulas to generate your schedule:
1. Monthly Payment Calculation:
2. For Each Payment:
- Interest Paid = Remaining Balance × Monthly Rate
- Principal Paid = Monthly Payment - Interest Paid
- New Balance = Previous Balance - Principal Paid
Where:
- M = Monthly payment amount
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of monthly payments
The calculator generates a complete schedule showing all payments from start to finish, with year-by-year summaries for easy analysis.
Key Amortization Concepts
A detailed table showing every payment throughout the loan term, including payment number, payment amount, principal portion, interest portion, and remaining balance for each payment.
The portion of each payment that reduces your loan balance. This amount increases with each payment as the interest portion decreases.
The cost of borrowing, calculated on the remaining balance. Early payments have higher interest charges because the balance is larger.
In early loan years, most of your payment goes toward interest rather than principal. This shifts over time as the balance decreases.
Additional principal payments beyond your required monthly amount. These directly reduce your balance, saving interest and shortening the loan term.
Making regular extra payments can significantly reduce both the total interest paid and the time needed to pay off the loan completely.
How to Use This Calculator
- Enter Loan Amount - Input the total amount you're borrowing (e.g., $200,000 for a mortgage)
- Set Interest Rate - Enter the annual interest rate as a percentage (e.g., 6.5%)
- Choose Loan Term - Specify the repayment period in years (e.g., 30 years for a typical mortgage)
- Add Extra Payment (Optional) - Enter any additional monthly payment amount to see the impact
- Generate Schedule - Click to create your complete amortization schedule
- Review Schedule - Switch between year-by-year summary and month-by-month detailed view
- Analyze Impact - See how extra payments reduce interest and accelerate payoff
Tip: Try different extra payment amounts to find the optimal balance between current cash flow and long-term interest savings.
Benefits of Using This Calculator
- Complete Transparency - See exactly where every dollar of every payment goes
- Long-Term Planning - Understand your financial commitment over the entire loan term
- Extra Payment Strategy - Calculate exactly how much extra payments will save you
- Year-by-Year Breakdown - Track progress and plan refinancing or payoff strategies
- Interest Cost Analysis - See the true cost of borrowing and total interest paid
- Payment-by-Payment Detail - Understand the amortization process and principal buildup
- Comparison Tool - Compare different loan scenarios and terms side by side
- Free and Unlimited - Generate as many schedules as you need without restrictions
Extra Payment Strategies
- Round Up Payments - Round your monthly payment to the nearest $100 or $500 for easy extra principal
- 13th Payment Method - Make one extra full payment per year to significantly reduce loan term
- Bi-Weekly Payments - Pay half your monthly payment every two weeks (26 half-payments = 13 full payments yearly)
- Annual Windfalls - Apply tax refunds, bonuses, or other windfalls directly to principal
- Percentage Increase - Add 5-10% to each payment for substantial long-term savings
- Early Year Focus - Extra payments in early years have the biggest impact on total interest
- Consistent Monthly Extra - Even $50-100 extra monthly can save years off a mortgage
- Recast vs Extra Payments - Compare loan recasting with making regular extra payments
Frequently Asked Questions
What is an amortization calculator?
An amortization calculator is a free financial tool that generates a complete payment-by-payment breakdown of a loan, showing how each payment is split between principal and interest, and the remaining balance after each payment throughout the loan term.
How does loan amortization work?
Loan amortization is the process of paying off a loan through regular equal payments. Each payment covers both interest and principal. Early payments have more interest, while later payments primarily reduce the principal balance.
What information does an amortization schedule show?
An amortization schedule shows payment number, payment amount, principal portion, interest portion, and remaining balance for every payment. It also provides year-by-year summaries of total principal paid, interest paid, and ending balance.
How do extra payments affect my loan?
Extra payments directly reduce your principal balance, which saves interest over the loan life and can shorten your term significantly. Even small regular extra payments can save thousands in interest and years off your loan.
What is the difference between principal and interest in each payment?
In each payment, interest is calculated on the remaining balance, while principal reduces the loan balance. Early payments have higher interest and lower principal. As balance decreases, more goes toward principal reduction.
Why should I use an amortization calculator?
An amortization calculator helps you understand exactly how your loan will be paid off, see the true cost of borrowing, evaluate extra payment impact, and make informed decisions about loan terms and prepayment strategies to save money.