Amortization Calculator
Modify the values and click Calculate to see your full amortization schedule and chart
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years
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Optional: Make Extra Payments
Our free Amortization Calculator instantly shows your monthly payment, total interest paid, and a complete year-by-year and month-by-month amortization schedule — plus an interactive chart showing how your loan balance, interest, and principal payments change over time. You can also model the impact of extra monthly payments.
How to Use This Calculator
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Enter your loan amount — the total amount you are borrowing or the remaining balance on an existing loan.
2
Enter your loan term in years and months — for example 30 years 0 months for a standard mortgage.
3
Enter your annual interest rate — use the exact rate from your loan agreement for accurate results.
4
Optionally enter an extra monthly payment amount and which month to start — see how much interest you save and how early you pay off the loan.
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Click Calculate to see your monthly payment, total interest, full schedule table, and an interactive chart. Switch between Annual and Monthly schedule tabs for detail.
How Different Loan Types Amortize
| Loan Type | How It Amortizes | Early Payments Heavy On | Best For |
|---|---|---|---|
| Standard Fixed-Rate Loan | Equal monthly payments throughout | Interest — up to 80% early on | Mortgages, auto loans, personal loans |
| Interest-Only Loan | Only interest for set period then full amortization | 100% interest during IO period | Short-term financing, investment properties |
| Balloon Loan | Small payments then large final lump sum | Interest — small principal reduction | Short-term commercial loans |
| Accelerated Payoff | Extra payments reduce principal faster | Principal — saves significant interest | Borrowers wanting early payoff |
| Adjustable-Rate Loan | Payment changes when rate adjusts | Varies by rate changes over time | Short holds, declining rate environments |
Frequently Asked Questions
In a standard amortizing loan your monthly payment is split between interest and principal. Interest is calculated on your remaining balance — so when the balance is high in the early years the interest portion is also high. On a $200,000 mortgage at 6% your first payment might be $850 in interest and only $350 in principal. By year 15 that flips — most of your payment reduces the balance. This is why extra early payments save so much interest over the life of the loan.
Extra payments can save a significant amount — often tens of thousands of dollars on a mortgage. For example on a $200,000 30-year loan at 6% the total interest is about $231,000. Adding just $200 extra per month from the start cuts the payoff to around 21 years and saves approximately $70,000 in interest. Use the extra payment field in our calculator to see the exact savings for your specific loan. The earlier you start extra payments the greater the impact.
Both are accounting methods for spreading costs over time but they apply to different assets. Amortization applies to intangible assets — patents, trademarks, goodwill, and copyrights — and also to loan repayment. Depreciation applies to tangible assets — machinery, vehicles, buildings, and equipment. In personal finance amortization usually refers to the gradual repayment of a loan through scheduled payments that cover both principal and interest.
A 15-year mortgage typically has a lower interest rate and you pay roughly half the total interest of a 30-year loan — but monthly payments are significantly higher. A 30-year mortgage has lower monthly payments giving you more monthly cash flow flexibility — but you pay much more interest overall. The right choice depends on your income stability, other financial goals, and whether the extra monthly savings from a 30-year loan would be invested elsewhere. Use our calculator to compare both scenarios side by side.
Want to Learn Everything About Amortization?
Read our complete guide — what amortization is, how loan repayment works, amortization schedules explained, and tips for paying off debt faster.