Calculate loan amortization schedule with monthly payments, total interest, and complete payment breakdown over the loan term.
| Month | Payment | Principal | Interest | Balance |
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The monthly payment is calculated using the standard amortization formula:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
Loan amortization is the process of paying off a loan through regular, fixed monthly payments over a set period. Each payment covers both the interest due and a portion of the principal. Over time, the interest portion decreases and the principal portion increases. Our amortization calculator generates a complete payment-by-payment schedule for your loan.
An amortization schedule is a table showing every payment for the life of the loan. Each row shows the payment number, total payment amount, interest paid, principal paid, and remaining loan balance. In early payments, most of your money goes toward interest. In later payments, most goes toward principal. This is why extra early payments save so much interest.
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1]. Interest for each period = Remaining Balance × Monthly Rate. Principal = Monthly Payment − Interest. This process repeats for every month until the loan is fully paid off after n payments.
Making extra payments directly reduces your principal balance, which means less interest accumulates in future months. Even one extra payment per year can shorten a 30-year mortgage by 4-5 years and save tens of thousands in interest. Use our extra payment calculator to see exactly how much you can save.
Most home and auto loans use amortization (compound). Some personal loans use simple interest, where interest is calculated on the current principal balance daily. With simple interest loans, paying early or making extra payments saves more money because interest is calculated daily on the remaining balance rather than on the original loan amount.
Loan amortization is the process of paying off a loan through regular payments over time. Each payment covers both interest on the outstanding balance and principal reduction. Over time, more of each payment goes toward principal and less toward interest.
The monthly payment is calculated using a formula that considers the loan amount, interest rate, and loan term. This ensures the loan is fully paid off by the end of the term with equal monthly payments.
Yes, making extra payments can significantly reduce your total interest and pay off your loan faster. Extra payments typically go directly toward principal reduction. Check with your lender to ensure there are no prepayment penalties.
Amortization loans have equal payments that include both principal and interest, with the interest portion decreasing over time. Simple interest loans calculate interest only on the principal, potentially with different payment structures.
As you make payments, the outstanding principal balance decreases. Since interest is calculated on the remaining balance, less interest accrues each month. This means more of your fixed payment goes toward principal reduction over time.
