Amortization

Amortization Calculator Visualize your loan repayment schedule, understand how much you'll pay in interest, and see h...

Amortization Calculator

Visualize your loan repayment schedule, understand how much you'll pay in interest, and see how extra payments can save you money.

Loan Amount ($)

Loan Term (Years) 15 years 20 years 25 years 30 years

Interest Rate (%)

Loan Start Date

Optional: Make Extra Payments

Monthly Yearly

By adding extra payments, you can pay off your loan faster and save on interest.

Monthly Payment

$0

Total Interest Paid

$0

Total Cost of Loan

$0

Payoff Date

-

How payments change over the life of a 30-year loan

Chart

Schedule

As the term of your mortgage progresses, a larger share of your payment goes toward paying down the principal until the loan is paid in full at the end of your term.

Principal paid

Interest paid

Loan balance

As of May 2050:

• Principal paid: $0
• Interest paid: $0
• Loan balance: $0

Understanding Amortization

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. Each payment is split between interest and principal, with the proportion changing over time. In the early years of a loan, most of your payment goes toward interest. As the loan matures, more of your payment goes toward reducing the principal.

Why This Matters

Understanding your amortization schedule empowers you to make smarter financial decisions:

• See the true cost of borrowing: The total interest paid over the life of a loan can be substantial. For example, on a $350,000 loan at 5.27% over 30 years, you could pay over $300,000 in interest alone.
• Accelerate payoff with extra payments: Even small additional payments can significantly reduce the total interest paid and shorten the loan term.
• Plan for the future: Knowing when your loan will be paid off helps you plan for major life events or other investments.

How to Use This Calculator

1. Enter your Loan Amount, Loan Term, and Interest Rate.
2. Specify your Loan Start Date to calculate your payoff date.
3. (Optional) Enter an Extra Payment amount and frequency to see how it impacts your schedule.
4. Click "Calculate Amortization" to generate your summary and chart.
5. Use the tabs to switch between the Chart view (which shows the trend of principal, interest, and balance) and the Schedule view (which provides a detailed month-by-month breakdown).

Key Terms Explained

• Principal: The original sum of money borrowed.
• Interest: The cost of borrowing the principal, calculated as a percentage of the outstanding balance.
• Amortization: The process of gradually paying off a debt through regular payments.
• Extra Payments: Additional amounts paid beyond the scheduled monthly payment, which directly reduce the principal and save on future interest.

Note: This calculator assumes a fixed-rate loan with equal monthly payments. It does not account for taxes, insurance, or variable rates.