Amortization Calculator
Generate a full loan amortization schedule showing every monthly payment's split between principal and interest, plus your remaining balance over time.
What is Loan Amortization?
Amortization is the process of paying off a loan through regular scheduled payments over time. Each payment covers the interest accrued since the last payment, with the remainder reducing the principal balance.
In the early months of a loan, most of your payment goes toward interest. As the balance decreases, you pay less interest each month, so more of each payment goes toward principal — this is called a negatively-amortizing schedule in reverse.
How the Monthly Payment is Calculated
The standard amortization formula is: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ – 1], where P = principal, r = monthly rate, n = total number of payments.
Frequently Asked Questions
What is an amortization schedule?
It is a table showing each scheduled payment of a loan, broken down into the interest and principal portions, along with the remaining balance after each payment.
Why do I pay more interest at the start?
Interest is calculated on the outstanding balance. Early on the balance is high, so more of each payment is interest. As you pay down principal the interest portion shrinks.
Does extra principal payment help?
Yes. Making extra principal payments reduces your balance faster, which reduces total interest paid and can shorten your loan term significantly.
Is the formula the same for all loans?
Yes. Whether it's a mortgage, car loan, or personal loan, the amortization calculation uses the same formula as long as the rate is fixed.
What happens with a variable rate loan?
The schedule recalculates whenever the rate changes. Your monthly payment may increase or decrease accordingly.
Can I download the schedule?
You can select all content in the table and copy it to spreadsheet software like Excel or Google Sheets.
Is this calculator free?
Yes — completely free, no registration required, and nothing is stored on our servers.