Build a year-by-year amortization schedule to see how your loan balance decreases over time.
USD
%
Years
Monthly Payment
$1,499/ month
Fixed payment each month over the full loan term.
Total Principal$250,000
Total Interest$289,595
Total Paid$539,595
Yearly Amortization Schedule
Year
Principal
Interest
Balance
1
$3,070
$14,916
$246,930
2
$3,259
$14,727
$243,671
3
$3,460
$14,526
$240,210
4
$3,674
$14,313
$236,536
5
$3,900
$14,086
$232,636
6
$4,141
$13,846
$228,495
7
$4,396
$13,590
$224,098
8
$4,668
$13,319
$219,431
9
$4,955
$13,031
$214,475
10
$5,261
$12,725
$209,214
11
$5,586
$12,401
$203,629
12
$5,930
$12,056
$197,699
13
$6,296
$11,691
$191,403
14
$6,684
$11,302
$184,719
15
$7,096
$10,890
$177,622
16
$7,534
$10,452
$170,088
17
$7,999
$9,988
$162,089
18
$8,492
$9,494
$153,597
19
$9,016
$8,971
$144,581
20
$9,572
$8,414
$135,009
21
$10,162
$7,824
$124,847
22
$10,789
$7,197
$114,057
23
$11,455
$6,532
$102,603
24
$12,161
$5,825
$90,441
25
$12,911
$5,075
$77,530
26
$13,708
$4,279
$63,823
27
$14,553
$3,433
$49,270
28
$15,451
$2,536
$33,819
29
$16,404
$1,583
$17,415
30
$17,415
$571
$0
Each row shows what you paid toward principal and interest in that year, plus your remaining balance.
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What is the Amortization Calculator?
An amortization calculator is a financial tool that generates an amortization schedule: a month-by-month or year-by-year table showing how a loan balance is paid down. For each payment period, it splits your payment into principal (reducing the balance) and interest (cost of borrowing), then recalculates the interest on the remaining balance for the next period. This schedule reveals the true cost and timeline of repayment, essential for mortgages, car loans, and any fixed-rate installment debt.
How it works
The calculator starts with your principal, interest rate, and term to compute a fixed monthly payment using the amortization formula. Then it loops through each month: calculates interest on the current balance, subtracts that interest from your payment to find the principal portion, reduces the balance, and moves to the next month. The calculator aggregates each month into years, showing total principal paid, total interest paid, and the remaining balance at the end of each year. Over time, you see interest payments shrink and principal payments grow as the balance declines.
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]; Interest Each Month = Remaining Balance × (Annual Rate ÷ 12 ÷ 100); Principal Each Month = Payment − Interest
The first formula calculates your fixed monthly payment: P is the loan amount, r is the monthly interest rate (annual rate ÷ 100 ÷ 12), and n is the total number of months. For each month, interest accrues on the remaining balance, and the rest of your payment reduces principal. This repeats until the balance reaches zero.
Monthly Payment: $333 | Year 1 Principal: $2,356 | Year 1 Interest: $1,660 | Year 5 Balance: $0
A personal loan. Higher interest rate means more cost upfront, but the term is short.
How to use the Amortization Calculator
Enter the loan principal (amount borrowed) in your chosen currency.
Input the annual interest rate as a percentage (e.g., 6% for a mortgage, 10% for a personal loan).
Set the loan term in years (e.g., 30 for a mortgage, 5 for a car loan).
Click 'Calculate' to compute your fixed monthly payment and generate the amortization schedule.
Review the year-by-year table to see how principal and interest are split across your payments.
Adjust any input to run 'what-if' scenarios and compare different rates or terms instantly.
Benefits
See exactly how much principal and interest you pay in each year, helping you understand the true cost of borrowing.
Identify when your payments shift from mostly interest to mostly principal—motivating you to pay down principal faster.
Compare loan scenarios: a 15-year mortgage versus 30-year reveals the interest savings and payment differences instantly.
Plan for extra payments: adjust the term in the calculator to see how paying off 5 years early saves thousands in interest.
Verify your lender's figures: generate your own schedule to spot discrepancies or hidden fees in your loan documents.
Make confident financial decisions by understanding the full amortization before signing a multi-year debt agreement.
Tips & common mistakes
Common mistakes
Confusing annual and monthly interest rates—always enter the annual rate; the calculator handles the monthly conversion.
Forgetting that the amortization schedule shows principal and interest only, not property taxes, insurance, or other obligations bundled into your payment.
Assuming a variable-rate loan behaves like a fixed-rate loan—this calculator works only for fixed rates; variable rates reset periodically.
Ignoring early payment options—if you can pay extra toward principal, the schedule changes dramatically, but you must recalculate manually or adjust the term in the calculator.
Tips
Use the calculator to explore biweekly payments: a $250,000 loan with a 6% rate on a 30-year term becomes a 24-year loan with 26 biweekly payments annually instead of 12 monthly ones, cutting years off the term.
For mortgages, plug in a 15-year term versus 30-year to see the dramatic difference in total interest—often $200,000+ on a $400,000 home.
Test refinancing scenarios: if you've paid 5 years of a 30-year mortgage, calculate a new 25-year mortgage at a lower rate to see if the savings justify the closing costs.
Print or export the amortization schedule and share it with a financial advisor or lender to verify accuracy and negotiate better terms.
Frequently asked questions
What is an amortization schedule?
An amortization schedule is a table showing every payment on a loan, split into principal and interest, along with the remaining balance. It shows how your debt declines over time and reveals how much you pay in total interest. The calculator generates this schedule automatically.
Can I use this for variable-rate loans?
No—this calculator assumes a fixed interest rate for the entire term. If your loan has an adjustable or variable rate (common in ARMs or mortgages after an initial fixed period), the calculator shows only the payment during the fixed-rate phase. Consult your lender for variable-rate scenarios.
Why does my amortization schedule differ from my lender's?
The calculator shows principal and interest only. Your lender's statement may include property taxes, homeowners insurance, HOA fees, mortgage insurance (PMI), or other escrow items added on top. Compare the principal and interest columns to verify accuracy.
How does paying extra toward principal affect the schedule?
Extra principal payments reduce the loan balance faster, so you pay less interest over the life of the loan and shorten the term. You can simulate this by adjusting the term downward in the calculator to see the new schedule.
Is the amortization schedule accurate for all loan types?
Yes, for any fixed-rate loan: mortgages, car loans, personal loans, student loans, and business loans all use the same amortization formula. The formula works as long as your interest rate is fixed and your payment is constant.
Why is so much of my early payment going to interest?
Interest is calculated on the full remaining balance at the start of each period. Early on, the balance is highest, so interest is largest. As you pay down principal, the interest portion shrinks. This is how amortization works—it's normal and expected.