Amortization Schedule Calculator

Calculate detailed loan payment schedules with extra payments, interest savings, and visualizations. Perfect for mortgages, auto loans, and personal loans.

$
Loan amount must be between $1,000 and $10,000,000
Total amount borrowed
%
Interest rate must be between 0% and 100%
Annual percentage rate (APR)
Loan term must be between 1 and 50 years
Length of the loan
Please select a valid start date
First payment date
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Understanding Amortization

Fixed Monthly Payments

Each payment is the same amount, but the portion applied to interest decreases while the principal portion increases over time.

Front-Loaded Interest

In early years, most of your payment goes toward interest. This is why extra payments early in the loan save so much money.

Accelerated Payoff

Making extra payments directly reduces principal, which reduces future interest and can shorten your loan term significantly.

Amortization Formula

Monthly Payment Formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]

Where: M = Monthly payment, P = Loan amount, i = Monthly interest rate (annual rate ÷ 12), n = Total number of payments (years × 12)

Frequently Asked Questions

Loan amortization is the process of paying off a debt over time through regular payments. Each payment covers both interest and principal, with the interest portion decreasing and principal portion increasing over the life of the loan.

Extra payments directly reduce the principal balance of your loan. This reduces the amount of interest charged in future periods and can significantly shorten the loan term. Even small extra payments can save thousands in interest over the life of a loan.

This depends on your interest rate vs. expected investment returns. If your loan interest rate is higher than what you expect to earn from investments, paying down debt usually makes more sense. If you can earn more from investments than your loan's interest rate, investing may be better. Also consider factors like risk tolerance and financial goals.

A 15-year mortgage has higher monthly payments but much less total interest paid over the life of the loan. A 30-year mortgage has lower monthly payments but significantly more interest paid overall. 15-year loans typically have lower interest rates than 30-year loans.