Amortization Calculator Standard Extra Payments Compare Loans ...
Amortization Calculator
Standard Amortization
Loan Amount ($)
Annual Interest Rate (%)
Loan Term (Years)
Extra Payments
Loan Amount ($)
Annual Interest Rate (%)
Loan Term (Years)
Extra Monthly Payment ($)
Compare Loans
Loan Amount ($)
Loan A: Interest Rate (%)
Loan A: Term (Years)
Loan B: Interest Rate (%)
Loan B: Term (Years)
Click "Print or Save as PDF" above → Choose "Save as PDF" as your printer → Click "Save".
Results
Loan Breakdown
Understanding Loan Amortization
Amortization is the process of paying off a loan through regular payments over time. Each payment includes both principal (the original loan amount) and interest (the cost of borrowing).
Standard amortization shows your payment schedule over the full loan term. Extra payments can significantly reduce your total interest costs and shorten your loan term. Loan comparison helps you evaluate different loan offers to find the most cost-effective option.
Understanding your amortization schedule empowers you to make informed decisions about your debt and potentially save thousands of dollars in interest over the life of your loan.
Frequently Asked Questions
A: An amortization schedule is a table showing each periodic loan payment, broken down into principal and interest amounts, along with the remaining loan balance after each payment. In the early years of a loan, most of your payment goes toward interest, while later payments are mostly principal.
A: Extra payments directly reduce your principal balance, which decreases the amount of interest you'll pay over the life of the loan and can significantly shorten your payoff time. Even small extra payments, like $50-100 per month, can save thousands in interest and years off your loan term.
A: A shorter loan term typically has a lower interest rate and forces you to pay off the loan faster, but it comes with higher monthly payments. Making extra payments on a longer-term loan gives you payment flexibility while still reducing interest costs. Choose based on your budget and financial goals.
A: Both are important, but the interest rate has a bigger impact on your total cost. A lower interest rate saves you more money over time, even with a longer term. However, a shorter term with a slightly higher rate might still be better if you can afford the higher payments.
A: Most lenders automatically apply extra payments to principal, but it's always good to confirm with your specific lender. Some may require you to specify that extra payments should go toward principal reduction rather than being applied to future payments.
A: These calculations use the standard amortization formula and are mathematically accurate. However, actual lender calculations may vary slightly due to rounding methods, payment processing dates, or additional fees not included in the basic calculation.
A: Yes, this calculator works for any fixed-rate, fully amortizing loan including mortgages, auto loans, personal loans, and student loans. It assumes monthly payments and doesn't account for variable rates, balloon payments, or interest-only periods.