Amortization Calculator

An amortization schedule is a complete table of every loan payment, showing how much goes to interest, how much reduces the principal, and what the remaining balance is after each payment. It lets you see exactly how your debt decreases over time.

Amortization is the process of spreading loan payments over time. Early payments are mostly interest; later payments are mostly principal.

Interest is calculated on the remaining loan balance. At the start of a loan, the balance is at its highest, so the interest portion of each payment is largest. As you pay down the principal, the balance drops, interest charges shrink, and more of each payment goes to principal.

Your interest payment is calculated on the remaining balance. Early on, your balance is high, so more of each payment goes to interest. As the balance decreases, more goes to principal.

Extra payments go directly toward your principal balance, which reduces future interest charges. This shortens your loan term and can save a substantial amount in total interest, especially if extra payments are made early in the loan when the balance is highest.

Negative amortization occurs when your monthly payment is less than the interest owed, causing your loan balance to grow rather than shrink. This can happen with certain adjustable-rate mortgages or income-based repayment plans. Standard fixed-rate loans do not have negative amortization.

Each row represents one payment period. The columns typically show the payment number, total payment amount, the portion applied to interest, the portion applied to principal, and the remaining balance. Reading down the table shows how your balance steadily decreases with each payment.

Yes. The amortization calculator works for any fixed-rate installment loan — mortgages, auto loans, personal loans, student loans, and more. Just enter the loan amount, annual interest rate, and term in months.

Amortization refers to the scheduled repayment of a loan over time. Depreciation is an accounting concept that spreads the cost of a physical asset (like a car or equipment) over its useful life. Though the words sound similar, they apply to very different situations.

Multiply your monthly payment by the total number of payments, then subtract the original loan principal. The difference is your total interest cost. The amortization calculator does this automatically and displays the total in the summary above the schedule.