Amortization Calculator
See a full breakdown of your loan's principal and interest payments over time.
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Get in TouchAn amortization schedule breaks down each loan payment into principal and interest, showing exactly how your balance declines over time. On a $20,000 loan at a 6% rate over 5 years, your first payment of about $386.66 includes roughly $100 in interest and $286.66 in principal.
How It Works
This calculator takes your loan amount, interest rate, and term, then generates a period-by-period schedule showing how much of each payment goes toward interest and how much reduces your principal balance. Enter your loan details to see the full schedule from your first payment to your last.
Formula
Each period's interest and principal are calculated from the remaining balance:
- M — the fixed monthly payment
- Balance — the remaining loan balance at the start of the period
- r — the monthly interest rate (annual rate ÷ 12)
After each payment, the new balance is the old balance minus that period's principal, and the process repeats until the balance reaches zero.
Example
Say you borrow $20,000 at a 6% annual interest rate for 5 years (60 months):
- Fixed monthly payment: ≈ $386.66
- Payment 1: ≈ $100.00 interest, ≈ $286.66 principal
- Payment 60 (final): ≈ $1.92 interest, ≈ $384.74 principal
- Total interest paid over the loan: ≈ $3,199.60
Assumptions & Limitations
This calculator assumes a fixed interest rate and equal monthly payments over the full loan term, with no extra principal payments. It doesn't account for variable rates, balloon payments, or fees. Results are estimates for educational purposes only and shouldn't be treated as a formal loan offer.
Frequently Asked Questions
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