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Loan Amortization Calculator

View your complete payment schedule and see how extra payments can save you thousands.

Loan Details

$
%
years
$

Enter your loan details and click Calculate

to see your payment schedule

Loan Amortization

Amortization is the process of spreading loan payments over time. Each payment covers both interest and principal, but the split changes—early payments are mostly interest, while later payments go mostly toward principal. Understanding this helps you see how extra payments can save thousands.

How to Use

  1. 1 Enter your total loan amount (the principal you're borrowing).
  2. 2 Enter your annual interest rate (APR). Check your loan documents.
  3. 3 Select your loan term from the dropdown menu.
  4. 4 Optionally add extra monthly payments to see potential savings.

FAQ

What do the schedule columns mean?

Principal — The portion of your payment that reduces your loan balance.

Interest — The cost of borrowing, paid to the lender.

Balance — What you still owe after each payment.

Why is so much interest paid early on?

Interest is calculated on your remaining balance. When you start, your balance is highest, so more of each payment goes to interest. As you pay down the principal, interest charges decrease and more goes toward principal.

How do extra payments help?

Extra payments go directly to principal, reducing your balance faster. This means less interest accrues each month, potentially saving you thousands of dollars and years of payments over the life of the loan.

Should I make bi-weekly payments?

Bi-weekly payments (half your monthly payment every 2 weeks) result in 26 half-payments = 13 full payments per year instead of 12. This extra payment can shave years off a 30-year mortgage.

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing the principal. APR (Annual Percentage Rate) includes the interest rate plus other fees like origination fees, giving a more complete cost picture. For this calculator, enter your APR for accurate results.

Can I apply this to any loan type?

Yes! This calculator works for mortgages, auto loans, personal loans, and any fixed-rate installment loan. Just enter your loan terms and see your complete payment schedule.

Calculator Limitations

This calculator assumes fixed-rate loans with constant monthly payments. It doesn't account for adjustable rates, payment holidays, escrow, PMI, or other fees. Always verify with your lender for exact figures.