Amortization Calculator

Calculate your complete loan payment schedule with monthly principal, interest, and remaining balance breakdowns.

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.

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