Free Loan Amortization Calculator

Loan amortization is the process of paying off debt through regular payments that cover both principal and interest. Early payments go mostly to interest, while later payments go mostly to principal. An amortization schedule shows this breakdown for each payment over the life of the loan.

Monthly payments are calculated using the amortization formula that considers loan amount, interest rate, and term. The formula ensures equal monthly payments throughout the loan term while properly accounting for compound interest. Our calculator does this math instantly.

Interest is calculated on the remaining loan balance. Early in the loan, your balance is highest, so more of your payment goes to interest. As you pay down the principal, the interest portion shrinks and more goes to principal. This is why extra early payments can significantly reduce total interest paid.

This calculator works for any fixed-rate amortizing loan: mortgages, auto loans, personal loans, student loans, and more. Enter the loan amount, annual interest rate, and term in years or months to see your payment schedule.