Amortization Calculator
Calculate your complete loan payment schedule with monthly principal, interest, and remaining balance breakdowns.
💡 Amortization Insights
Early payments primarily cover interest charges. Over time, an increasing proportion of each installment pays down the loan principal.
How Loan Amortization Works
Amortization is the process of spreading a loan into a series of equal periodic payments. Each payment is split into two parts: interest on the outstanding loan balance and repayment of the principal.
Key Amortization Formulas
- Monthly Interest:
Interest = Remaining Principal × (Annual Rate / 12) - Monthly Principal:
Principal Repayment = Total Monthly Payment − Monthly Interest - New Balance:
New Balance = Previous Balance − Principal Repayment
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a complete table of periodic loan payments detailing the exact dollar amount of principal and interest in each payment until the balance reaches zero.