Enter your loan amount, interest rate, loan term, and optional extra payments to generate a full amortization schedule. You'll see your monthly payment, total interest paid, and a month-by-month breakdown of principal vs. interest — so you can see exactly how your balance decreases over the life of the loan.
Monthly Payment
--
Total of All Payments
--
Total Interest Paid
--
Number of Payments
--
Interest Savings (via Extra Payments)
--
Amortization is the process of paying off a debt through regular scheduled payments over time. Each payment covers the interest owed for that period and reduces the remaining principal. Early in the loan, most of your payment goes toward interest; later, more goes toward principal.
An amortization schedule is a complete table of periodic loan payments showing the breakdown of each payment into principal and interest, along with the remaining balance after each payment. It lets you see exactly how your debt decreases month by month over the life of the loan.
The standard formula is M = P × [r(1+r)^n] / [(1+r)^n − 1], where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments. This formula calculates a fixed payment that fully repays the loan over the term.
A longer loan term means lower monthly payments but significantly more total interest paid over the life of the loan. A shorter term increases your monthly payment but dramatically reduces total interest. For example, a 15-year mortgage typically saves tens of thousands of dollars in interest compared to a 30-year mortgage on the same principal.
Yes. You can enter extra monthly payments, an extra yearly lump sum, or a one-time additional payment. The calculator will adjust the schedule to show how those extra payments reduce your principal faster, shorten your loan term, and save you money on interest.
This calculator works for any fixed-rate amortizing loan, including mortgages, auto loans, personal loans, and student loans. It does not account for variable-rate loans, balloon payments, or loans with irregular payment schedules.
No. The interest rate is the cost of borrowing the principal, while the APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs like origination fees or mortgage insurance. This calculator uses the stated interest rate, not the APR, so your actual cost of borrowing may be slightly higher than shown.
No, this calculator only computes principal and interest payments. It does not include property taxes, homeowner's insurance, PMI, or other escrow costs. Your actual monthly housing payment may be higher than the figure shown here.