Money
Amortization Calculator
Last updated: May 31, 2026
Written by Blake Boege
An amortization calculator is a financial tool that computes the periodic payments of a loan and provides a detailed schedule showing how each payment is split between principal and interest. It calculates the remaining principal balance after each payment, demonstrating the gradual reduction of the debt over the loan's life.
Calculate your monthly loan payments, see the principal and interest breakdown, and generate a full month-by-month amortization schedule for any fixed-rate loan.
Quick Answer
See how much of each payment goes to principal vs interest with a full month-by-month amortization schedule for any loan.
e.g. 350,000
Cash you put toward the purchase up front. · e.g. 70,000
e.g. 30
e.g. 7
Taxes, insurance, and dues
e.g. 4,200
e.g. 1,800
Usually applies when down payment is under 20%. · e.g. 0
e.g. 0
Total monthly payment
$2,362.85
Loan amount $280,000.00 over 360 months
Examples
$300k loan, 30 yr at 7% interest
P&I ≈ $1,995.91/mo · total interest ≈ $418,527
Same loan over a 15-year term
P&I ≈ $2,696.48/mo · total interest ≈ $185,366
$150k loan, 10 yr at 6% interest
P&I ≈ $1,665.31/mo · total interest ≈ $49,837
How it works
The monthly principal and interest portion is computed using the standard amortized loan formula. The calculator then charts the progression of payments to show the principal reduction over time.
Monthly principal and interest
M = P × r × (1 + r)^n / ((1 + r)^n − 1)
The parts
- M = monthly payment
- P = loan amount (principal)
- r = monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = number of monthly payments
What is loan amortization?
Amortization is the process of spreading out a loan into a series of fixed, equal payments over time. With each payment, a portion of the money goes toward interest (the cost of borrowing) and the rest goes toward the principal balance (the amount borrowed). An amortization schedule shows this breakdown for every payment.
How the amortization schedule works
When you first start paying off an amortized loan, the vast majority of each monthly payment goes toward paying off the interest. As the loan matures and the overall principal balance decreases, the monthly interest charge also shrinks. Consequently, a larger percentage of your monthly payment is applied to the principal.
Related amortization tools
For home-specific mortgages or simpler payment calculations, check out these related tools:
Disclaimer. This calculator is for general educational use. Actual loan terms, interest accrual methods, and amortization details can vary by lender, loan type, credit profile, and regional regulations. It is not financial advice.
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Frequently asked questions
An amortization schedule is a table showing each periodic payment on an amortizing loan. It details how much of each payment goes toward the principal balance and how much goes toward interest, along with the remaining balance after each payment.
The periodic payment is calculated using the standard amortized loan formula: M = P × r × (1 + r)^n / ((1 + r)^n − 1). P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments.
Principal is the amount you borrowed and must pay back. Interest is the fee charged by the lender for the loan. Early in the amortization schedule, most of your payment goes to interest. Over time, as the principal decreases, more of your payment goes to paying down the principal.
A longer loan term (like 30 years) results in lower monthly payments but significantly higher total interest paid over the life of the loan. A shorter term (like 15 years) has higher monthly payments but amortizes the debt much faster, saving money on interest.
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