qcalculator.net

Amortization Calculator

Enter any loan amount, term and rate to see the monthly payment and a complete amortization schedule — how each payment splits between interest and principal, and how the balance falls to zero. Works for mortgages, auto and personal loans.

Loan details

Monthly payment
$1,580
Total of payments
Total interest
Payoff date
Interest as % of loan

Amortization schedule

Period Principal Interest Balance
Advertisement

How it works

The fixed monthly payment uses the standard amortizing-loan formula:

M = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ]

Each month, interest = balance × r; the rest of the payment reduces the principal. Early on most of the payment is interest; later, most is principal.

Worked example

$250,000 over 30 years at 6.5%:

Frequently asked questions

What does it mean to amortize a loan?
Amortizing means paying off a loan with equal periodic payments that cover both interest and principal, so the balance reaches exactly zero at the end of the term. The split shifts over time — more interest at first, more principal later.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As you pay down principal, the interest portion of each payment shrinks and the principal portion grows, even though the total payment stays the same.
How do extra payments change the schedule?
Any amount paid above the scheduled payment goes straight to principal, which lowers the balance and all future interest. Even modest extra payments can shorten the term and save significant interest over the life of the loan.

Related calculators