Loan Amortization Schedule Calculator
Use our free online Amortization Calculator to perform fast, accurate calculations with instant formulas, step-by-step arithmetic, and verified reference benchmarks.
Amortization Calculator
Instant Live Computation • Zero Waiting
Adjust inputs on the left for instantaneous live computation.
How to Calculate: The Amortization Calculator Formula
Computes fixed monthly payment (M) where P is loan principal, r is monthly interest rate (annual rate / 12), and n is total monthly payments.
Step-by-Step Calculation Guide
- Input original loan principal balance.
- Enter annual interest rate (APR) and loan duration in years.
- Inspect monthly payment amount and split between principal and interest.
- Review how total interest compounds over the full lifetime of the loan.
Practical Amortization Calculator Examples
Loan amount: $350,000 at 6.5% interest for 30 years (360 months).
Loan amount: $350,000 at 5.75% interest for 15 years (180 months).
Principal vs Interest Shift Over 30-Year Loan ($300k at
Official reference values and benchmark classifications based on standard institutional guidelines.
| Loan Year | Remaining Balance | Annual Principal Paid | Annual Interest Paid |
|---|---|---|---|
| Year 1 | $295,920 | $4,080 | $18,674 |
| Year 5 | $276,825 | $5,286 | $17,468 |
| Year 10 | $244,834 | $7,314 | $15,440 |
| Year 20 | $149,612 | $13,978 | $8,776 |
| Year 30 | $0 | $22,604 | $150 |
Frequently Asked Questions about Amortization Calculator
What is loan amortization?
Amortization is the process of spreading a loan into equal periodic payments where early payments primarily cover interest and later payments cover principal.
How do extra principal payments affect amortization?
Extra principal payments reduce your remaining loan balance immediately, which shortens your payoff timeline and drastically cuts total lifetime interest.
Why is interest so high in the first few years?
Interest is calculated on the remaining unpaid balance. Because the principal balance is highest in year one, the monthly interest charge is also at its peak.
What is negative amortization?
Negative amortization occurs when your monthly payment is less than the accrued interest, causing your total loan balance to grow rather than shrink.