Amortization Calculator

Finance

Last updated: July 11, 2026

Generate a complete amortization schedule for any loan. See how each payment is split between principal and interest over the full life of the loan, and understand the true cost of borrowing.

Loan Amount ($)

Interest Rate (%)

Loan Term (years)

How to Use This Calculator

Enter the Loan Amount (total amount you want to borrow).
Input the Annual Interest Rate (APR) offered by your lender.
Set the Loan Term in years.
Click Calculate to see your monthly payment, total interest, and a complete amortization schedule.
Use the Copy Table button to export the schedule to your clipboard.

Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Where M = monthly payment, P = principal (loan amount), r = monthly interest rate (annual rate / 12), and n = total number of months (years × 12). Each month, interest = remaining balance × r, and principal = payment − interest.

Examples

$250,000 at 6.5% for 30 years: Monthly payment = $1,580. Total interest = $318,875. Total cost = $568,875. You pay more in interest than the loan itself over 30 years.

$200,000 at 5% for 15 years: Monthly payment = $1,582. Total interest = $84,684. Total cost = $284,684. The 15-year term costs $234,191 less in interest than the 30-year term.

First Payment Breakdown: On a $200,000 loan at 6%, the first payment is $1,199. Only $199 goes to principal; $1,000 goes to interest. By month 180 (year 15 of 30), the split reverses — over half goes to principal.

Frequently Asked Questions

What is amortization?

Amortization is the process of spreading a loan into fixed monthly payments over its term. Each payment covers both interest and principal. Early payments are mostly interest; over time, more of each payment goes toward the principal until the loan is fully paid off.

How does amortization work?

Each month, interest is calculated on the remaining balance. Your fixed payment first covers that interest, and the remainder reduces the principal. As the principal decreases, the interest portion shrinks and the principal portion grows with each subsequent payment.

What is negative amortization?

Negative amortization occurs when your monthly payment doesn't cover the full interest owed. The unpaid interest gets added to the principal, causing your balance to grow instead of shrink. This can happen with certain adjustable-rate mortgages or income-driven student loan plans.

Can I pay off a loan faster than the amortization schedule?

Yes. Making extra payments toward the principal shortens the loan term and reduces total interest. Even one extra payment per year can shave months or years off a 30-year mortgage. Check with your lender to ensure extra payments are applied to the principal.