Amortization Calculator
Calculate loan amortization schedule
About this Tool
The amortization calculator generates a detailed payment schedule showing how each loan payment is split between principal and interest over time. Amortization is the process of paying off debt with regular payments over a set period. In early payments, most money goes toward interest with little principal reduction. As the loan progresses, more goes toward principal and less toward interest. This schedule is crucial for understanding the true cost of borrowing and planning strategies to pay off loans faster.
Common Use Cases
Mortgage Planning
View your complete mortgage payment schedule to understand how much equity you build over time and plan prepayment strategies to save on interest.
Loan Comparison
Compare amortization schedules of different loan terms. See how a 15-year vs 30-year mortgage affects total interest paid and payment distribution.
Extra Payment Strategy
Understand where extra payments have maximum impact. Additional principal payments in early years save significantly more interest than later payments.
Refinancing Decisions
Evaluate whether refinancing makes sense by comparing remaining principal, interest, and payments on your current loan versus a new loan schedule.
Pro Tips
- !
Early Interest Heavy
Early loan payments are mostly interest. On a 30-year mortgage, over 80% of your first payment may be interest. This ratio gradually reverses over the loan term.
- !
Extra Payments Impact
Extra principal payments early in the loan have the greatest effect. One extra payment in year 1 saves more interest than multiple extra payments in later years.
- !
Biweekly Payments
Making half-payments every two weeks results in 13 full monthly payments per year instead of 12, significantly shortening loan terms and saving interest.
- !
Tax Deductions
For mortgages, interest paid may be tax-deductible. The amortization schedule shows exactly how much interest you pay each year for tax purposes.