Amortization Calculator

Create a detailed payment schedule for your loan or mortgage. See exactly how your payments are allocated between principal and interest over time.

Loan Amortization Calculator

Loan Summary

Monthly Payment

$1,135.58

Total Payments

$408,808.80

Total Interest

$208,808.80

Payments Count

360

Amortization Schedule

Click the calculate button to generate your amortization schedule

Loan Balance Over Time

Understanding Amortization

What is Amortization?

Amortization is the process of paying off debt with regular, fixed payments over time. Each payment includes both principal and interest, with the proportion gradually changing over the loan term. In the early years, a larger portion of your payment goes toward interest, while in later years, more goes toward paying down the principal.

How Amortization Works

With an amortized loan, the lender calculates a fixed monthly payment that will fully repay the loan by its end date. Here's how each payment is distributed:

  1. The interest portion is calculated based on the current outstanding balance
  2. The remainder of the payment goes toward reducing the principal
  3. As the principal decreases, less interest accumulates
  4. Therefore, more of each payment goes to principal reduction over time

Benefits of Understanding Your Amortization Schedule

Financial Transparency

See exactly where your money is going with each payment

Identify Savings Opportunities

Understand how extra payments can reduce your total interest cost

Track Equity Building

Monitor your growing ownership stake as principal is paid down

Long-Term Planning

Plan future budgets with precise knowledge of payment obligations

Frequently Asked Questions

What's the difference between amortization and depreciation?

Amortization refers to spreading loan payments over time, while depreciation refers to the declining value of physical assets. Both concepts involve allocating costs over a period, but they apply to different financial aspects.

How do extra payments affect my amortization schedule?

Extra payments go directly toward reducing the principal balance, which means less interest accrues over the remaining loan term. This can significantly shorten your loan term and reduce the total interest paid.

Why does most of my early payments go toward interest?

Interest is calculated based on the outstanding principal balance. Since your balance is highest at the beginning of the loan, more interest accrues during this period. As you pay down the principal, the interest portion naturally decreases.

Can I get an amortization schedule from my lender?

Yes, most lenders will provide an amortization schedule upon request or when you close on a loan. However, online calculators like this one give you the flexibility to explore different scenarios before committing to a loan.

Do all loans use amortization?

No, not all loans use amortization. While most mortgage and auto loans are amortized, other loan types like credit cards, interest-only loans, or balloon payment loans follow different repayment structures.