Loan Amortization Calculator

Generate a complete amortization schedule for any fixed-rate loan. See exactly how each payment reduces your balance and how much goes toward interest each month.

What Is Loan Amortization?

Loan amortization is the process of paying off a debt through regular scheduled payments over a fixed period. Each payment is split between interest owed and principal repayment.

How to Read Your Amortization Schedule

Each row in the amortization table shows:

• Payment number — which installment you are on
• Payment amount — your fixed monthly payment
• Interest paid — the portion going to interest this month
• Principal paid — the portion reducing your loan balance
• Remaining balance — how much you still owe after this payment

Why Early Payments Are Mostly Interest

At the start of a loan, the outstanding balance is highest, so the interest portion of each payment is largest. As the balance decreases over time, more of each payment goes toward principal. This gradual shift is what defines the amortization curve.

Frequently Asked Questions

Can I make extra payments?

Yes. Extra principal payments shorten the loan term and reduce total interest paid significantly. Even one extra payment per year on a mortgage can save thousands of dollars in interest.

How do I calculate my monthly payment manually?

Use the standard amortization formula: M = P[r(1+r)^n]/[(1+r)^n-1] where P is principal, r is monthly interest rate, and n is number of payments.