Amortization Calculator
Enter a loan amount, interest rate, and term to instantly see your monthly payment and full amortization summary.
Example
For a $300,000 loan at 6.5% annual interest over 30 years (360 payments): the monthly payment is $1,896.20. Over the life of the loan you pay $682,633.47 total, of which $382,633.47 is interest. After year 1 the balance is about $296,646.82, and after year 5 it drops to roughly $280,832.93.
How it works
We apply the standard amortization formula M = P·r / (1 − (1+r)⁻ⁿ), where r is the monthly rate and n the number of payments. The schedule rows show the remaining balance at key milestones.
Good to know
This Amortization Calculator turns three inputs — loan amount, annual interest rate, and term in years — into a fixed monthly principal-and-interest payment, then breaks down how that payment splits between paying down what you borrowed and paying the lender for the privilege. It is built for anyone weighing a mortgage, auto loan, student loan, or personal loan who wants to see the true lifetime cost of borrowing before signing, not just the headline monthly figure.
Reach for it whenever you are comparing offers or running "what if" scenarios: a quarter-point rate change, a 15-year versus 30-year term, or a larger down payment that shrinks the principal. Because every number recalculates the instant you type, it is well suited to side-by-side comparisons — open the page twice and change one variable at a time to isolate its effect.
To read the output, start with the monthly payment, then look at the Total interest figure, which is often the most eye-opening number: it is money paid on top of the amount borrowed. The Principal-versus-Interest bars show that split visually, and the milestone table reveals how slowly the balance moves early on — at the end of year one you have usually paid far more interest than principal, because interest is charged on the largest balance at the start.
One important caveat: this tool models only principal and interest at a fixed rate with equal payments. It deliberately leaves out property taxes, homeowners or mortgage insurance, HOA dues, and any extra payments, so your real monthly housing cost will typically run higher than the figure shown here. Treat the result as the loan's core math, then add escrow items separately for a full picture.
Frequently asked questions
Why is my total interest higher than the loan amount?
On long terms like 30 years at typical rates, interest accrues for decades on a slowly shrinking balance, so cumulative interest can exceed the original principal. A shorter term or lower rate sharply reduces total interest.
Does this include property taxes, insurance, or HOA fees?
No. This calculates only principal and interest using the standard amortization formula. Your actual mortgage payment may be higher once escrow items like taxes, homeowners insurance, PMI, and HOA dues are added.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What is loan amortization in simple terms?
Amortization is the process of paying off a loan through equal, scheduled payments over time. Each payment covers the interest accrued on the current balance first, with the remainder reducing the principal, so the interest portion shrinks and the principal portion grows as the loan ages.
How is a monthly loan payment calculated?
It uses the formula M = P·r / (1 − (1+r)^−n), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This produces one fixed payment that fully pays off the loan over the term.
Why does most of my early payment go toward interest?
Interest is charged on the outstanding balance, which is largest at the beginning of the loan. Because the balance is high early on, a bigger share of each payment is consumed by interest, and only later does more of the payment go toward principal.
Does a shorter loan term lower the total interest paid?
Yes. A shorter term means fewer months of interest accruing and a faster-shrinking balance, so total interest is substantially lower, though the monthly payment is higher because the principal is repaid over fewer payments.
How do extra payments affect amortization?
Extra payments applied to principal reduce the outstanding balance faster, which lowers the interest charged in every subsequent period and can shorten the payoff time. This calculator does not model extra payments, so it reflects the standard schedule only.
What is the difference between interest rate and APR on a loan?
The interest rate is the cost of borrowing the principal, while the APR (annual percentage rate) also includes certain lender fees and points expressed as a yearly rate. This calculator uses the interest rate, so the APR on an offer may be slightly higher.
Is the amount shown here the same as my full mortgage payment?
Not necessarily. The figure here covers only principal and interest; a full mortgage payment often also includes property taxes, homeowners insurance, mortgage insurance (PMI), and HOA fees collected through escrow, which raise the total monthly amount.
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