Amortization Calculator
Calculate loan amortization schedules, monthly payments, and interest breakdown. Understand how your loan payments are applied to principal and interest over time.
Loan Information
Payment Options
Amortization Results
Monthly Payment
Total Interest
Total Payments
Payoff Time
Payment Breakdown
Amortization Schedule
| Payment # | Date | Payment | Principal | Interest | Balance |
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How the Amortization Calculator Works
Enter Loan Details
Input your loan amount, annual interest rate, and loan term in years to establish the basic loan parameters.
Choose Payment Options
Select your payment frequency (monthly, bi-weekly, etc.) and add any extra payments to see how they affect your loan.
Review Payment Summary
Analyze your monthly payment, total interest, and overall loan cost to understand your financial commitment.
Examine Amortization Schedule
View the detailed payment schedule showing how each payment is split between principal and interest over time.
Frequently Asked Questions
Loan amortization is the process of paying off a loan through regular payments over time. Each payment includes both principal (the original loan amount) and interest. Early payments consist mostly of interest, while later payments apply more toward the principal balance.
Extra payments go directly toward the principal balance, reducing the total interest you'll pay and shortening the loan term. Even small extra payments can save thousands of dollars in interest over the life of the loan.
Bi-weekly payments result in 26 payments per year (equivalent to 13 monthly payments), while monthly payments result in 12 payments per year. This extra payment each year with bi-weekly scheduling can significantly reduce your loan term and total interest paid.
Our calculator uses industry-standard formulas and precise decimal arithmetic to provide accurate amortization schedules. Results match those used by banks and financial institutions, though actual loan terms may include additional fees or different calculation methods.
Yes, this calculator works for any amortizing loan including mortgages, auto loans, personal loans, and business loans. It's designed for fixed-rate loans with regular payment schedules. Variable rate loans or interest-only loans require different calculations.