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Amortization Schedule Calculator
Generate a monthly amortization schedule showing principal, interest, and remaining balance for any loan.
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Monthly Payment
Total Payment
Total Interest
Calculated in your browser. We never see your numbers.
| Month | Payment | Principal | Interest | Balance |
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How to Use This Calculator
Enter your loan amount, annual interest rate, and loan term. The Start Date field is optional and for display reference only — it does not affect the calculation. As you fill in the fields, the calculator instantly displays your monthly payment, total amount paid, and total interest. Below the summary, a table shows the first 12 months of your amortization schedule, breaking down each payment into the principal and interest portions and your remaining balance.
Amortization Formula
Monthly payment is calculated using the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where M is the monthly payment, P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments (years × 12). For a $200,000 loan at 6% for 30 years: r = 0.06/12 = 0.005, n = 360. M = $200,000 × 0.005 × (1.005)^360 / ((1.005)^360 − 1) ≈ $1,199.10 per month. For 0% interest, the formula simplifies to P ÷ n.
Example Calculation
Consider a $200,000 loan at 6% annual interest for 30 years. Monthly payment is $1,199.10. In month 1, interest = $200,000 × 0.005 = $1,000.00, and principal = $1,199.10 − $1,000 = $199.10, leaving a balance of $199,800.90. In month 2, interest is slightly less ($199,800.90 × 0.005 = $999.00), so more goes to principal ($200.10). This gradual shift continues for all 360 months. Total paid: $431,676 — of which $231,676 is interest over the life of the loan.
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Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a table showing each periodic payment on a loan over time. It breaks down each payment into the amount applied to principal (reducing your balance) and the amount applied to interest (cost of borrowing). The schedule shows how your loan balance decreases with each payment until it reaches zero at the end of the term.
How does amortization work?
With a standard amortizing loan, your monthly payment stays the same throughout the loan term, but the split between principal and interest changes each month. Early payments are mostly interest because your balance is high. As the balance decreases with each payment, the interest portion shrinks and the principal portion grows — until the final payment when you owe almost nothing in interest.
Why do early payments have more interest than principal?
Interest is calculated on your outstanding balance each month. When the balance is large (early in the loan), the interest charge is large, leaving less of your fixed monthly payment to reduce the principal. As the balance shrinks over time, the monthly interest charge decreases, so more of each payment goes toward principal. This is why extra early payments save so much in total interest.
How can I pay off my loan faster?
Making extra payments directly reduces your principal balance, which immediately lowers future interest charges. Even one extra payment per year (making 13 instead of 12 payments) can cut years off a 30-year mortgage. You can also make bi-weekly payments instead of monthly — this results in 26 half-payments per year (equivalent to 13 full payments). Always confirm with your lender that extra payments apply to principal.
What is negative amortization?
Negative amortization occurs when your monthly payment is less than the interest charged for that period. Instead of your balance decreasing, the unpaid interest is added to your principal — causing your balance to grow over time. This can happen with certain adjustable-rate mortgages or income-based repayment loans. Standard fixed-rate loans do not have negative amortization.
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