Amortization Calculator
Generate a complete loan amortization schedule showing principal, interest, and balance for each payment. See how extra payments can save you time and money.
Results
Monthly Payment
$1,580.17
Principal
$250,000
Total Interest
$318,861
Total Payment
$568,861
Total Payments
360
Loan Summary
Interest Rate
6.5%
Loan Term
30 years
Interest Ratio
56.1%
Payoff Date
Dec 2055
Amortization Schedule
| # | Date | Payment | Principal | Interest | Extra | Total Int. Paid | Balance |
|---|
Understanding Amortization
Monthly Payment Formula (PMT)
M = P * [r(1+r)^n] / [(1+r)^n - 1]
Where M is monthly payment, P is principal, r is monthly interest rate (annual rate / 12), and n is total number of payments.
Interest Portion
Interest = Balance * (Annual Rate / 12)
Each month's interest is calculated on the remaining balance. As balance decreases, less goes to interest and more to principal.
Extra Payments
New Balance = Balance - Principal - Extra
Extra payments go directly to principal, reducing your balance faster and saving interest over the life of the loan.
Frequently Asked Questions
An amortization schedule is a complete table showing each loan payment over the life of a loan. For each payment, it breaks down how much goes toward principal (reducing your loan balance) and how much goes toward interest. Early in the loan, most of each payment goes to interest, while later payments are mostly principal. This schedule helps borrowers understand exactly how their loan will be paid off over time.
Extra payments go directly toward your loan principal, which reduces your balance faster and saves money on interest. For example, adding just $100/month extra to a $200,000 mortgage at 6% could save over $40,000 in interest and pay off the loan 5+ years early. Our calculator shows exactly how much time and interest you'll save with extra payments.
Interest is calculated on your remaining loan balance. At the start, your balance is highest, so interest charges are highest. As you pay down the principal, less interest accrues each month, allowing more of your fixed payment to reduce the principal. This is why making extra payments early in your loan has the greatest impact on total interest savings.
Loan term is simply how long you have to repay the loan. You can express this in months or years - for example, 360 months equals 30 years. Common mortgage terms are 15 years (180 months) or 30 years (360 months). Shorter terms mean higher monthly payments but significantly less total interest paid over the life of the loan.
Yes, this amortization calculator works for any fixed-rate loan with regular monthly payments, including mortgages, auto loans, personal loans, student loans, and home equity loans. It uses the standard amortization formula that banks and lenders use for calculating loan payments and schedules.