Loan Amortization Calculator
View a complete loan payoff schedule with detailed breakdown of principal and interest payments over time. Visualize your loan amortization schedule.
How to Use This Calculator
- Enter your loan amount
- Input your interest rate (annual)
- Select your loan term (years or months)
- Optionally add extra payments to see how much you can save
- Click Calculate to view your complete amortization schedule
Loan Details
Extra Payments (Optional)
💡 Understanding Loan Amortization
Amortization is the process of paying off a loan through regular payments over time. Each payment covers both interest and principal, but early payments are mostly interest while later payments are mostly principal. This calculator shows you exactly how your loan is paid down.
💰 Save Money with Extra Payments
Making extra payments can significantly reduce your total interest paid and help you pay off your loan faster. Even small extra monthly payments of $50-$100 can save thousands in interest over the life of the loan. Use this calculator to see the impact!
📊 How to Read Your Schedule
- Payment Number: The sequential payment (1, 2, 3, etc.)
- Principal: Amount that reduces your loan balance
- Interest: Cost of borrowing (decreases over time)
- Balance: Remaining amount owed after each payment
🔗 Save & Share Your Schedule
Your loan details are automatically saved in the URL. You can bookmark this page to save your calculation, or use the Share button to send it to others. You can also export to CSV for use in spreadsheets.
Frequently Asked Questions
What is loan amortization?
Amortization is the process of paying off a loan with fixed payments over time. Each payment covers interest first, then reduces the principal. Early payments are mostly interest; later payments are mostly principal.
How is an amortization schedule calculated?
The monthly payment is fixed using the loan amount, interest rate, and term. Each month, interest = balance × (annual rate ÷ 12), and the rest of the payment reduces the balance. Repeat until the balance reaches zero.
Why is most of my early payment going to interest?
Interest is charged on the outstanding balance, which is highest at the start. As you pay down principal, the interest portion shrinks and more of each payment goes toward the balance.
How can I pay off an amortized loan faster?
Make extra principal payments. Any amount above the scheduled payment goes straight to principal, which lowers future interest and shortens the loan term — often by years.