Amortization Schedule Calculator
Estimated monthly payment
What is amortization?
Amortization is the process of spreading out a loan into a series of fixed payments over time. With each payment, you'll pay both interest and principal, though the proportion changes over the life of the loan.
What is an amortization schedule?
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.
How payments change over the life of a 30-year loan
In the early years of a mortgage, most of your monthly payment goes toward interest rather than principal. As time passes and you pay down the principal, the interest portion decreases while the principal portion increases.
Mortgage Amortization Isn't the Only Kind
While we often associate amortization with mortgages, the concept applies to various types of loans including auto loans, personal loans, and business loans. Additionally, amortization is an accounting concept used to spread the cost of intangible assets over their useful lives.
How to calculate amortization
The standard formula for calculating the fixed monthly payment (P) required to fully amortize a loan of L dollars over a term of n months at a monthly interest rate of c is:
P = L[c(1 + c)^n]/[(1 + c)^n - 1]
How to calculate amortization with an extra payment
Making extra payments reduces your principal balance faster, which in turn reduces the total interest paid over the life of the loan. You can calculate the impact by reducing the principal balance by the extra payment amount and recalculating the amortization schedule.
How to use this mortgage amortization calculator
Using our amortization calculator is simple:
- Enter your loan amount
- Input your annual interest rate
- Select your loan term in years
- Choose your loan start date
- Click "Calculate Amortization" to see your results
Amortization Calculator Results Explained
After calculating, you'll see:
- Monthly Payment: The fixed amount you'll pay each month
- Total Interest: The total interest paid over the loan term
- Total Payment: The sum of all payments (principal + interest)
- Pay-off Date: When your loan will be fully paid
How Can Using an Amortization Calculator Help Me?
An amortization calculator helps you:
- Understand how much of your payment goes to principal vs. interest
- See how extra payments can reduce your loan term and total interest
- Compare different loan options
- Plan your financial future with accurate payment information
Mortgage Resources
Mortgage rates
Current mortgage rates vary by loan type, credit score, and location. Check with multiple lenders to find the best rate for your situation.
Mortgage options
Common mortgage types include fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, and jumbo loans.
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