🏦 Free Amortization Calculator
Calculate your monthly loan payment and generate a full amortization schedule. See how much goes to principal vs. interest over time.
What is this tool?
Our free amortization calculator generates a complete loan payment schedule, showing exactly how much of each payment goes toward principal versus interest over the life of your loan. Enter the loan amount, interest rate, term, and start date to instantly see your monthly payment and a year-by-year breakdown of your loan balance. Whether you are shopping for a mortgage, planning a car loan, or analyzing a business loan, this loan amortization schedule calculator helps you understand the true cost of borrowing. By visualizing how payments are applied over time, you can make better financial decisions — like whether to make extra payments or choose a shorter loan term.
How it works
The amortization schedule calculator uses the standard amortization formula used by banks and lenders worldwide:
Monthly Payment Formula
Where: M = monthly payment, P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = total number of payments (years × 12)
Payment Allocation
Each month, the interest portion is calculated as the current loan balance × monthly rate. The remaining payment amount goes toward reducing the principal. Over time, as the balance decreases, the interest portion shrinks and more of each payment goes toward principal — this is the standard amortization process.
How to use
- Enter loan amount — Type the total amount you plan to borrow.
- Enter interest rate — Type the annual percentage rate (APR) offered by your lender.
- Enter loan term — Type the number of years you have to repay the loan.
- Select start date — Choose when the loan begins (optional, for reference).
- Click Calculate — The tool shows your monthly payment, total interest over the loan term, and a complete year-by-year amortization table.
Reference Table
| Loan Term | Rate | Monthly Payment (per $100k) | Total Interest |
|---|---|---|---|
| 15 years | 6.0% | $843.86 | $51,894 |
| 15 years | 7.0% | $898.83 | $61,789 |
| 30 years | 6.0% | $599.55 | $115,838 |
| 30 years | 7.0% | $665.30 | $139,508 |
| 30 years | 8.0% | $733.76 | $164,154 |
Frequently Asked Questions
What is amortization?
Amortization is the process of spreading out a loan into a series of fixed payments over time. Each payment covers the interest due on the remaining balance and reduces the principal. Early in the schedule, most of the payment goes toward interest; later, most goes toward principal.
Can I make extra payments?
Yes! Making extra principal payments reduces your loan balance faster, which saves on interest and shortens the loan term. Use this loan amortization calculator to see the impact — you can compare the standard schedule with what would happen with additional payments.
Does this include taxes and insurance?
No, this calculator focuses on principal and interest only. Actual monthly mortgage payments may also include property taxes, homeowners insurance, and PMI (private mortgage insurance) if applicable.
Tips & Advice
When comparing loan options, always look at the total interest cost over the full term, not just the monthly payment. A 30-year mortgage has lower monthly payments than a 15-year mortgage but costs significantly more in total interest. For example, a $300,000 loan at 6.5% costs approximately $383,000 in interest over 30 years versus about $207,000 over 15 years. Use this amortization schedule generator to run different scenarios before committing to a loan. If you can afford the higher payment, a shorter term or making one extra payment per year can save tens of thousands of dollars in interest.