Loan Amortization Calculator
Loan amortization is the process of paying off a loan through scheduled payments that include both principal and interest. Early payments are mostly interest; later payments are mostly principal. Formula: Payment = P x [r(1+r)^n] / [(1+r)^n - 1]. A $300,000 mortgage at 6.5% for 30 years has a $1,896/mo payment with $382,633 total interest. Extra payments reduce both the term and total interest.
Generate a full loan amortization schedule showing monthly principal, interest, and remaining balance. Supports extra payments, multiple loan types, and monthly or yearly views.
Loan Details
Loan Summary
Amortization Schedule
| # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Apr 2026 | $1,896.20 | $271.20 | $1,625.00 | $299,728.80 |
| 2 | May 2026 | $1,896.20 | $272.67 | $1,623.53 | $299,456.12 |
| 3 | Jun 2026 | $1,896.20 | $274.15 | $1,622.05 | $299,181.97 |
| 4 | Jul 2026 | $1,896.20 | $275.64 | $1,620.57 | $298,906.34 |
| 5 | Aug 2026 | $1,896.20 | $277.13 | $1,619.08 | $298,629.21 |
| 6 | Sep 2026 | $1,896.20 | $278.63 | $1,617.57 | $298,350.58 |
| 7 | Oct 2026 | $1,896.20 | $280.14 | $1,616.07 | $298,070.44 |
| 8 | Nov 2026 | $1,896.20 | $281.66 | $1,614.55 | $297,788.79 |
| 9 | Dec 2026 | $1,896.20 | $283.18 | $1,613.02 | $297,505.60 |
| 10 | Jan 2027 | $1,896.20 | $284.72 | $1,611.49 | $297,220.89 |
| 11 | Feb 2027 | $1,896.20 | $286.26 | $1,609.95 | $296,934.63 |
| 12 | Mar 2027 | $1,896.20 | $287.81 | $1,608.40 | $296,646.82 |
| 13 | Apr 2027 | $1,896.20 | $289.37 | $1,606.84 | $296,357.46 |
| 14 | May 2027 | $1,896.20 | $290.93 | $1,605.27 | $296,066.52 |
| 15 | Jun 2027 | $1,896.20 | $292.51 | $1,603.69 | $295,774.01 |
| 16 | Jul 2027 | $1,896.20 | $294.09 | $1,602.11 | $295,479.92 |
| 17 | Aug 2027 | $1,896.20 | $295.69 | $1,600.52 | $295,184.23 |
| 18 | Sep 2027 | $1,896.20 | $297.29 | $1,598.91 | $294,886.94 |
| 19 | Oct 2027 | $1,896.20 | $298.90 | $1,597.30 | $294,588.04 |
| 20 | Nov 2027 | $1,896.20 | $300.52 | $1,595.69 | $294,287.52 |
| 21 | Dec 2027 | $1,896.20 | $302.15 | $1,594.06 | $293,985.37 |
| 22 | Jan 2028 | $1,896.20 | $303.78 | $1,592.42 | $293,681.59 |
| 23 | Feb 2028 | $1,896.20 | $305.43 | $1,590.78 | $293,376.16 |
| 24 | Mar 2028 | $1,896.20 | $307.08 | $1,589.12 | $293,069.08 |
Common Amortization Terms
| Term | Definition |
|---|---|
| Amortization | Gradual repayment of a loan through scheduled payments of principal and interest |
| Principal | The original amount borrowed, excluding interest |
| Interest Rate | Annual percentage charged on the remaining principal balance |
| APR | Annual Percentage Rate including fees; higher than the stated interest rate |
| Equity | Portion of the asset you own (value minus remaining loan balance) |
| Payoff Date | Date when the loan balance reaches zero |
| Extra Payment | Additional amount paid toward principal each month, reducing total interest |
How to Use
- 1
Enter loan details
Enter the loan amount, annual interest rate, and term in years. Or click a preset (30-Year Mortgage, Auto Loan, etc.) to pre-fill common values.
- 2
Add extra payments (optional)
Enter an extra monthly payment amount to see how much interest you save and how many months early you pay off the loan.
- 3
Review the summary
Check the loan summary for monthly payment, total interest, total cost, and the principal-to-interest breakdown bar.
- 4
Explore the schedule
Switch between monthly and yearly views. Each row shows payment, principal, interest, and remaining balance. Click Show All to see the full schedule.
Frequently Asked Questions
- What is loan amortization?
- Loan amortization is the process of repaying a loan through fixed periodic payments that cover both principal and interest. Each payment is the same amount, but the proportion changes over time: early payments are mostly interest, while later payments are mostly principal. The amortization schedule shows this breakdown for every payment period.
- How is the monthly payment calculated?
- The monthly payment uses the formula: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate (annual rate / 12), and n is the total number of payments. For a $300,000 loan at 6.5% for 30 years: r = 0.005417, n = 360, monthly payment = $1,896.20.
- How much can I save with extra payments?
- Extra payments go directly toward principal, reducing the balance faster and shortening the loan term. For a $300,000 mortgage at 6.5% for 30 years, adding $200/month in extra payments saves approximately $96,000 in interest and pays off the loan 6 years early. Even small extra payments compound significantly over time.
- What is the difference between principal and interest?
- Principal is the original amount borrowed. Interest is the cost of borrowing that money, calculated as a percentage of the remaining balance. In a $300,000 mortgage at 6.5%, the first payment includes $1,625 in interest and only $271 in principal. By the last payment, nearly the entire amount goes to principal.
- Why does most of my payment go to interest at first?
- Interest is calculated on the remaining balance. When the balance is high (early in the loan), the interest portion is large. As you pay down principal, the balance shrinks, so less interest accrues each month. This is called front-loaded interest. It means you build equity slowly at first, then faster as the loan matures.
- How does loan term affect total interest paid?
- Longer terms mean lower monthly payments but significantly more total interest. A $300,000 mortgage at 6.5%: 30-year term costs $382,633 in interest ($1,896/mo); 15-year term costs $170,325 in interest ($2,613/mo). The 15-year option saves $212,308 but requires $717 more per month.