Amortization Calculator: Payment and Full Schedule

1. Enter the loan amount and your annual interest rate. The rate comes from your own offer; the number shown is only an example.
2. Enter the loan term and pick whether it is in years or months. Add an extra monthly payment and a first payment date if you like.
3. Read the monthly payment and totals, then open the schedule to see the first year month by month and a yearly summary.

What each result tells you:

Amortization is the process of paying off a loan with equal payments, where each payment covers that period's interest first and the rest reduces the balance. An amortization schedule is the table that shows this split for every payment, along with the balance left afterward.

It works the same way for an auto loan, a personal loan, a student loan or a mortgage. The schedule helps you see where each payment goes, compare offers, and decide whether paying extra is worth it. It is not a full budget: lender fees, insurance and taxes sit outside the amortization math.

The payment stays the same, but the interest part shrinks and the principal part grows as the balance falls.

1. Convert the annual rate to a monthly rate: r = annual rate / 100 / 12, and the term to months: n.
2. Interest for the month = current balance x r. Principal for the month = payment - interest, plus any extra you pay.
3. New balance = old balance - principal. The next month starts from the lower balance, and the last payment is trimmed so the balance lands at zero.

If the rate is zero, the payment is simply the loan divided by the number of months. Because interest is charged on the balance, early payments are mostly interest, so every extra dollar of principal removes future interest for the rest of the loan.

Suppose you borrow 20,000 at an annual rate of 6% over 5 years, which is 60 monthly payments.

Calculation: the monthly rate is 6 / 100 / 12 = 0.005 and n = 60. The formula gives a payment of 386.66 a month.

Meaning: on the regular schedule you pay 3,199.36 in interest, about 16 percent of the amount borrowed. Adding 100 a month clears the loan a full year early and saves roughly 670 in interest.

Three inputs drive almost everything in an amortization schedule, and a fourth can bend the curve.

Interest Rate

A higher rate raises both the payment and the total interest. On a long loan, even a quarter-point difference can move the total interest by hundreds or thousands, so it pays to shop the rate.

Loan Term

A longer term lowers the monthly payment but raises total interest, because you borrow for longer. A shorter term does the opposite: a bigger payment but far less interest overall.

Loan Amount

Borrowing less, or putting more money down, cuts the payment and the interest together. Rounding the amount up "just in case" quietly adds to the total cost.

Timing of Extra Payments

Extra principal saves the most when paid early, because it removes interest for every remaining month. The same dollar added near the end saves almost nothing.

Several tools on this site look at the same loan from different angles. This one is the general starting point: any loan, from amount, rate and term.

Compare offers by total cost, not just the monthly payment, and check that the payment fits your budget before you commit.

Before You Borrow

Test a few rates and terms to see how each changes the payment and the total interest, so you know what is affordable and can spot an expensive offer. Check the payment against your income with the debt-to-income ratio calculator.

Comparing Offers

Two loans with the same payment can cost very different amounts if the terms differ. The schedule and total interest make the real difference clear.

When You Get Extra Cash

Try a bonus or raise as an extra monthly payment and see the months and interest it removes before you commit the money. If you have higher-rate debt elsewhere, weigh a refinance too.

1. Judging a Loan by the Monthly Payment Alone

A low payment often hides a long term and high total interest. Always check the total paid, not just the monthly figure.

2. Confusing Rate with APR

APR includes certain fees, so a loan can cost more than the headline rate suggests. Use APR to compare offers fairly.

3. Treating the Payment as the Whole Cost

Insurance, taxes and add-on products sit outside amortization. Budget for the full bill, not just principal and interest.

4. Sending Extra Money Without Instructions

Some lenders apply extra money to the next payment instead of the principal. Ask that it reduce principal, and check your statement.

5. Using This for a Variable Rate

The schedule assumes one fixed rate for the whole term. An adjustable-rate loan changes after its fixed period, so the later rows will differ.

The math matches the standard fixed-rate amortization formula, so differences from a lender usually come from rounding or from costs this tool leaves out.

It uses the amortization formula M = P x r(1+r)^n / ((1+r)^n - 1), where P is the loan, r is the monthly interest rate and n is the number of monthly payments. The payment stays fixed and clears the balance by the end of the term.

It is a table that shows every payment split into interest and principal, with the remaining balance after each one. Early payments are mostly interest; later payments are mostly principal.

Yes. The amortization math is the same for auto loans, personal loans, student loans and mortgages. For a mortgage, remember that property tax and insurance are extra and not part of this payment.

Interest is charged on the balance, and the balance is highest at the start. As you pay down the principal, the interest portion shrinks and more of each payment reduces the balance.

It depends on the rate, balance and how early you start. Enter an amount in the extra payment field and the tool shows the interest and months it removes against the regular schedule.

No. It estimates the payment on the amount, rate and term you enter. Origination fees and other charges are not included, so compare offers by APR for a fuller picture.

The payment becomes the loan divided by the number of months, and total interest is zero. This is useful for interest-free promotional offers.

Enter a first payment date along with the loan details. The payoff date result shows the month and year of your final payment, including the effect of any extra payments.

Lenders round each payment and each interest charge to the cent, and some use daily interest. This tool keeps full precision and rounds only for display.

No. The calculation runs in your browser and nothing is sent to our servers. Anything you choose to Save stays in this browser only.

• Amortization Schedule (Corporate Finance Institute, standard amortization formula).
• Amortization (Investopedia, definition and method).
• How to pay off a loan faster (Consumer Financial Protection Bureau).