Amortization Calculator
Break a fixed-rate loan payment into principal and interest and see how the outstanding balance decreases.
FREE ONLINE CALCULATOR
Amortization Calculator
Change the settings below to calculate your result. You can check the assumptions further down this page.
Payment = principal × monthly rate / (1 − (1 + monthly rate)^(-months)).
How to use this amortization calculator
Choose a loan amount, annual rate and repayment term. Payments are monthly and assumed to be made at the end of each period. The yearly table totals scheduled payments and remaining principal.
Formula and calculation method
Payment = principal × monthly rate / (1 − (1 + monthly rate)^(-months)).
Worked example
A longer term usually reduces the required monthly payment but increases interest paid when all other assumptions remain the same.
Understanding the result
The interest part of each installment normally falls as the debt balance shrinks. The principal part generally rises even though the regular payment is unchanged. Reviewing the yearly schedule helps explain why a loan balance may decline slowly at the start.
When to use this calculator
For a meaningful comparison, match the financed amount, payment dates, rate type and all required lender fees. A long loan can appear attractive monthly while costing far more over its full term; the schedule reveals the trade-off.
What the results do not include
Does not include origination fees, irregular payment dates, taxes, insurance or variable rates.
Frequently asked questions
Why does early interest take up more of my payment?
Interest is calculated on the larger outstanding principal, so it generally starts higher.
What if the interest rate is zero?
The principal is split into equal monthly payments.
For education and estimates only. Check any contractual, tax, banking or employment terms that apply to your situation. The calculations are not financial advice or guaranteed returns.