Amortization Calculator

Enter loan details to see how each payment breaks down between principal and interest and how extra payments shorten your loan.

Benefits

• See your full payment schedule by month and year
• Understand how much interest you pay over the life of the loan
• Test extra payments to see how they reduce term and interest
• Plan payoff milestones and tax years for better budgeting

Formula

Monthly payment is calculated with this standard formula:

Where:

• MMM is the monthly payment
• PPP is the loan principal
• rrr is the monthly interest rate (annual rate divided by 12)
• nnn is the total number of payments (loan term in years times 12)

The calculator uses this formula to build a schedule that shows principal and interest for each payment.

Terms

• Principal: The original loan amount you borrow
• Interest Rate: The annual rate you pay, shown as a percentage
• Monthly Payment: Money you pay each month toward principal and interest
• Loan Term: Number of years to repay the loan
• Amortization Schedule: A table showing each payment, principal paid, interest paid, and remaining balance

Factors to Consider

• Extra payments go directly to principal and reduce interest and term
• Shorter loan terms raise monthly payments but cut total interest
• Adjustable rates change payment structure over time
• Taxes and insurance are often paid with your mortgage but may not be included here
• Refinance resets your amortization schedule and can lower interest cost