Amortization Calculator
How to use this calculator
- Enter the loan amount — the principal you borrow.
- Enter the interest rate — the annual rate (APR) as a percentage.
- Pick a term — how many months you will repay over.
- Press Calculate — see your monthly payment and the full year-by-year amortization schedule.
The amortization formula
Monthly payment M = P·r(1+r)n / ((1+r)n − 1), where P is principal, r is the monthly rate, and n is the number of payments. Each payment is split into interest (balance × monthly rate) and principal (the rest), so early payments are mostly interest and later payments mostly principal.
Worked example
A $300,000 loan at 6.5% over 30 years (360 months): monthly payment $1,896.20, total interest $382,633.47, total of payments $682,633.47.
A note on advice
This calculator is educational and does not constitute financial advice. Figures are estimates based on the inputs you provide.
Frequently asked questions
What is an amortization schedule?
A table showing how each monthly payment is split between interest and principal over the life of the loan, plus the remaining balance after each period.
Why is early interest so high?
Interest is charged on the outstanding balance, which is largest at the start. As principal is repaid, the interest portion of each payment shrinks.
Does this include taxes and insurance?
No. The schedule covers principal and interest only. Property taxes, homeowners insurance, and PMI are separate.
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