Amortization Calculator

Amortization is the process of paying off a loan through regular fixed payments over time. Each payment covers two things: a portion goes toward reducing your loan balance (principal), and the rest covers the cost of borrowing (interest).

What makes amortization interesting is how the split between principal and interest shifts over time. In the early years of a mortgage or auto loan, the majority of each payment goes toward interest because it's calculated on a large remaining balance. As you chip away at the principal, less interest accrues each month, and a growing share of your payment builds equity. By the final years, nearly all of your payment goes toward principal.

This amortization schedule generator gives you the complete picture: every payment, every month, from day one to your payoff date.

1. Enter your loan amount — the total principal you borrowed (not including interest). Use the slider for quick adjustments.
2. Select your loan term — how many years you have to repay. Common terms are 15 and 30 years for mortgages, or 3 to 7 years for auto loans.
3. Enter your interest rate — your annual percentage rate (APR). Use your actual rate if you already have a loan, or a current market average if you're planning ahead.
4. Set the start date — this determines the calendar dates on your amortization table and your projected payoff date.
5. Add extra payments (optional) — expand this section to see how additional monthly payments toward principal can save you money and shorten your loan.

Switch between the Chart and Schedule tabs to visualize your loan payoff. In Schedule view, click any year to expand the month-by-month breakdown, or switch to Monthly view for the full amortization table.

Extra payments are the most powerful tool for controlling your amortization. When you pay more than the minimum, the entire extra amount goes directly to reducing your principal. This creates a compounding benefit: lower principal means less interest next month, which means even more of your regular payment goes toward principal.

Consider a $300,000 mortgage at 6.5% over 30 years. The minimum payment is $1,896/month, and you'll pay $382,633 in total interest. Add just $200/month extra, and you'll:

• Pay off the loan 7 years early
• Save over $105,000 in interest
• Build equity significantly faster

Use the extra payment feature in this calculator to find the right amount for your budget and see the exact impact on your amortization schedule.

The fixed monthly payment for an amortizing loan is calculated using this formula:

• M = fixed monthly payment
• P = loan principal (amount borrowed)
• r = monthly interest rate (annual rate ÷ 12)
• n = total number of payments (years × 12)

Each month, the interest portion is calculated as: remaining balance × monthly rate. The remainder of your fixed payment goes to reducing the principal. This is why the split changes every month even though your total payment stays the same.