Amortization Calculator
Generate a complete loan amortization schedule with monthly and yearly breakdowns.
Loan Summary
| Month | Payment | Principal | Interest | Balance |
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What is an Amortization Calculator?
An amortization calculator is a financial tool that breaks down each loan payment into principal and interest over the life of the loan. It helps borrowers understand exactly how much they are paying in interest versus reducing their loan balance with every payment.
By generating a full amortization schedule, you can see your payoff date, total interest paid, and how extra payments could save you money. This is especially useful for mortgages, car loans, and personal loans.
How to Use
- Enter the total loan amount you plan to borrow.
- Input the annual interest rate as a percentage.
- Specify the loan term in full years.
- Optionally set a start date to see your payoff date.
- Click Calculate to view your monthly payment and full schedule.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a table that shows each periodic loan payment, breaking it down into the portion that goes toward interest and the portion that reduces the principal balance.
Can I use this for a mortgage?
Yes, this calculator works for any fixed-rate loan, including mortgages, auto loans, and personal loans.
Why does most of my early payment go to interest?
Interest is calculated on the remaining balance. Early in the loan, the balance is highest, so a larger share of each payment covers interest. Over time, more of each payment goes toward principal.
Does this calculator include taxes or insurance?
No, this calculator shows principal and interest only. Property taxes and insurance are separate escrow items not included here.