Amortization Calculator
Compute your monthly payment and create a full year-by-year amortization schedule for any loan or mortgage. Visualize interest paid vs. principal in one glance.
Results
Monthly Payment
Total Payment
Total Interest
Amortization Schedule (Annually)
| Year | Starting Balance | Total Payment | Principal Paid | Interest Paid | Ending Balance |
|---|
Understanding Loan Amortization
Amortization is the process of paying off a debt over time through regular payments consisting of both principal and interest. Most home and auto loans are fully amortizing, which means every payment reduces your loan balance until it’s paid in full at term end.
How Amortization Works
- Monthly payments stay the same, but the portion going to interest decreases over time, while principal increases.
- An amortization schedule shows for each period how your payment is split between principal and interest and the remaining balance.
- Early payments are mostly interest; later payments are mostly principal.
Use this calculator for any loan: mortgage, auto, personal, or other installment loans.
Tips for Reducing Interest
- Make extra principal payments when possible.
- Refinance to a lower interest rate if available.
- Choose a shorter loan term for less interest paid over time.
Common Loan Types Using Amortization
- Fixed-rate mortgages
- Auto loans
- Personal installment loans
- Student loans