Generate a detailed amortization schedule for any loan with our free online Amortization Calculator. See how each payment is split between principal and interest over the loan term. This tool helps you understand your loan's repayment structure, total interest paid, and remaining balance, empowering better financial planning.
Loan Summary:
Monthly Payment: $0.00
Total Principal Paid: $0.00
Total Interest Paid: $0.00
Total Cost of Loan: $0.00
Amortization Schedule:
| Payment No. |
Beginning Balance |
Payment |
Principal Paid |
Interest Paid |
Ending Balance |
About Amortization Calculator
Our free amortization calculator generates a detailed payment schedule showing how each loan payment is divided between principal and interest over the entire loan term. This powerful tool helps you understand exactly how much of each payment goes toward reducing your debt versus paying interest charges.
The calculator creates a complete amortization table with payment-by-payment breakdowns, helping you visualize your loan payoff progress and make informed decisions about extra payments, refinancing, or loan comparisons.
How to Use the Amortization Calculator
- Enter Loan Amount: Input the total amount you're borrowing (principal)
- Set Interest Rate: Enter the annual interest rate as a percentage
- Choose Loan Term: Input the loan duration in years
- Generate Schedule: Click "Generate Schedule" to create the amortization table
- Review Summary: Check monthly payment, total interest, and total cost
- Analyze Schedule: Examine the detailed payment-by-payment breakdown
- Plan Strategy: Use the data to plan extra payments or compare loan options
Amortization Tips & Strategies
- Early Payments Save Money: Extra principal payments early in the loan save significant interest
- Understand the Schedule: Early payments are mostly interest, later payments are mostly principal
- Compare Loan Terms: Use different terms to see how they affect total interest paid
- Bi-weekly Payments: Making bi-weekly payments can save years and thousands in interest
- Refinancing Analysis: Compare current loan with potential refinancing options
- Extra Payment Impact: See how additional principal payments affect payoff time
- Budget Planning: Use the schedule to plan for future payment amounts
Understanding Amortization
Amortization Process: Each payment is split between interest (based on remaining balance) and principal (reduces the debt).
Interest Front-Loading: Early payments contain more interest because interest is calculated on the larger remaining balance.
Principal Acceleration: As the balance decreases, more of each payment goes toward principal, accelerating debt reduction.
Total Interest: The total interest paid depends on the loan amount, interest rate, and term length.