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Amortization Calculator — Generate Your Complete Loan Payment Schedule

Use this free amortization calculator to build a complete payment schedule for any fixed-rate loan. See how each monthly payment splits between principal and interest, how your balance falls over time, and the total interest you will pay across the full term — with both annual and monthly tables.

Enter a fixed-rate loan and term for level monthly payment and a full schedule. For extra payments or payoff timelines, use Loan Payoff or Mortgage. For revolving debt, see Credit Card Payoff.

Fill the fields, then Calculate.

Results

Enter loan details and calculate to see payment and totals.

How to use

  1. Enter the loan amount, annual interest rate, and term in years (plus optional extra months).
  2. Click Calculate to see the level monthly payment, total interest, and principal vs interest share.
  3. Review the balance chart and switch between annual and monthly amortization schedules.
  4. For extra payments, taxes, or vehicle-specific costs, use the Loan Payoff, Mortgage, or Auto Loan calculators.

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What is amortization?

For loans, amortization is paying down debt with a series of scheduled payments. Each payment covers interest accrued on the balance since the last payment, plus a slice of principal. Over time the interest portion shrinks and the principal portion grows until the balance is zero.

Common amortizing products include fixed-rate mortgages, auto loans, many personal loans, and most standard student loans. Credit cards and lines of credit are usually revolving — balances and payments flex — so they do not follow a single amortization table like this tool.

How each payment is split

Monthly interest is typically calculated as remaining balance × (annual rate ÷ 12). The rest of your payment applies to principal. Because the balance falls, the same payment covers less interest next month, freeing more for principal — that is why the curve accelerates toward the end of the term.

Reading annual vs monthly schedules

The annual view sums interest and principal per calendar year of the loan and shows the balance at each year-end — handy for the big picture or rough tax-related interest totals (always verify with your lender and tax advisor). The monthly view shows every payment line-by-line when you need exact balances by period.

Extra payments

This calculator shows the baseline schedule without extra payments. If you pay ahead, your real schedule shifts: principal drops faster, total interest falls, and payoff comes sooner. Use the Loan Payoff or Mortgage calculators when you want to model recurring extra amounts explicitly.

Business accounting: a different meaning

In accounting, amortization can also mean spreading the cost of intangible assets (patents, trademarks, certain acquisition-related intangibles) over time. That is separate from loan amortization even though the word is the same. Tangible assets use depreciation instead.

Limits of this tool

The schedule assumes a fixed nominal rate and level monthly payments with no skipped payments, no fees rolled into the balance, and no adjustable-rate changes. ARMs, interest-only phases, balloon payoffs, and negative amortization need different models.

Frequently asked questions

Schedules, principal vs interest, early payoff, and amortization vs depreciation.

What is an amortization schedule?

An amortization schedule is a table of every payment on a loan. For each period it shows how much of the payment goes to interest, how much reduces principal, and the remaining balance. It reveals total interest over the life of the loan and how the principal–interest split changes over time.

How is amortization calculated?

Each month, interest is typically balance × (annual rate ÷ 12). Principal for that payment is the fixed payment minus that interest. The new balance is the old balance minus principal. The fixed payment itself comes from the standard loan formula M = P[r(1+r)^n]/[(1+r)^n−1] for n months.

Why do early loan payments go mostly to interest?

Interest is charged on the outstanding balance, which is highest at the start. Early payments are therefore mostly interest. As the balance falls, the same payment applies more to principal.

What is a fully amortized loan?

A fully amortized loan is paid off completely by regular payments of principal and interest so the balance reaches zero at the end of the term. Most mortgages, auto loans, and personal loans work this way, unlike interest-only, balloon, or negative-amortization structures.

Can I pay off an amortized loan early?

Usually yes, by paying extra toward principal. That shortens the payoff and reduces total interest. Check your loan for prepayment penalties — uncommon on many consumer loans but possible on some products.

How does making extra payments affect my amortization schedule?

Extra principal reduces the balance immediately, so future interest is lower and more of each scheduled payment goes to principal. The effect is largest early in the loan when balances (and interest charges) are highest.

What loans are not amortized?

Revolving credit like credit cards and many lines of credit are not amortizing term loans. Interest-only periods, balloon payments, and negative amortization are non-standard paths. Use tools built for those structures instead of a basic amortization table.

What is the difference between amortization and depreciation?

For personal finance, amortization usually means paying down a loan over time. In business accounting, amortization can also mean spreading the cost of intangible assets. Depreciation applies to tangible assets like equipment and buildings.

How do I read an amortization table?

Each row is one payment period. Interest is the cost for that period; principal is the amount that reduces debt; ending balance is what you still owe. Early rows show more interest; later rows show more principal.

Who uses this calculator

Homebuyers estimating the total cost of a mortgage, borrowers comparing how different terms change interest paid, homeowners thinking about extra principal payments, people who want year-by-year interest totals for planning, and anyone who wants a clear month-by-month picture of how a fixed-rate loan balance declines over time.