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Amortization Calculator
See every payment on your loan, month by month. Enter the loan amount, the interest rate and the term, and this amortization calculator shows your monthly payment plus the full amortization schedule — principal, interest and balance for each month.
Example filled in: a $20,000 loan at 7.5% interest over 60 months. 7.5% is an example rate, not a live market rate. Change any number below to run your own loan.
Amortization schedule
How to use this amortization calculator
- Enter the loan amount, the annual interest rate and the term in months.
- The amortization calculator shows your monthly payment, total interest and total paid.
- Scroll the schedule below to see each month: how much of the payment goes to interest, how much to principal, and the balance left.
Formula
Each month, interest = balance × (annual rate / 12). The monthly payment is fixed by the amortization formula M = P × r(1+r)n / ((1+r)n − 1). Principal paid that month = monthly payment − interest. New balance = old balance − principal paid. Early on, most of each payment is interest; by the last month, almost all of it is principal.
Worked example — $20,000 loan at 7.5% over 60 months
A $20,000 loan at 7.5% interest (an example rate, not a live market rate) over 60 months has a monthly payment of $400.76, total interest of $4,045.54 and total paid of $24,045.54. In month 1, interest is $125.00, principal is $275.76 and the balance falls to $19,724.24. In month 60, the last payment, interest is $2.49, principal is $398.27 and the balance reaches $0.00. Check it above — the amortization calculator gives the same schedule.
Frequently asked questions
What is an amortization schedule?
It is a month-by-month table of a loan: for each payment, how much goes to interest, how much goes to principal, and the balance left after the payment. The schedule above is the one for your numbers.
Why is most of my first payment interest?
Interest each month is charged on the balance still owed, and the balance is highest at the start. On the $20,000 example, month 1 interest is $125.00 of the $400.76 payment. As the balance falls, the interest part shrinks and the principal part grows.
How much interest will I pay on a $20,000 loan?
At 7.5% interest (an example rate) over 60 months, total interest is $4,045.54. Over 36 months at the same rate it is $2,396.48. Enter your own rate and term above to see your total.
Can I pay off my loan early?
Usually yes, and paying extra cuts the interest — see the loan payoff calculator. Check your loan agreement first: a few loans charge a prepayment penalty, and some lenders apply extra payments to future interest rather than principal unless you say otherwise.
What is the difference between amortization and simple interest?
Simple interest is charged once on the principal for the whole period. Amortization re-figures interest every month on the falling balance, with a fixed monthly payment that pays the loan off by the end of the term. Most US home, car and personal loans amortize.
Sources and method. Standard loan amortization formula: monthly rate = annual rate / 12; monthly payment = P × r(1+r)n / ((1+r)n − 1). Simple interest I = P × r × t; compound interest A = P(1 + r/n)nt. Rates in the examples on this page are examples only, not live market rates. Results are estimates, not financial advice.
Estimate, not financial advice. This calculator uses the numbers you enter and the standard amortization formula. Your lender’s figures, fees and payoff rules can differ. Check the loan agreement and talk to a financial professional before you borrow.