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Loan Amortization Calculator
Generate a full amortization schedule showing monthly payments, interest, and principal.
Enter your loan details and click Calculate to see the full amortization schedule.
Results are informational. Calculation is based on your input and public rules, official accounting may differ. For accuracy, confirm the final result if needed from the appropriate official source or specialist.
How it works?
Loan amortization spreads equal monthly payments over the loan term. Each payment covers interest first, then principal. Early payments are mostly interest; later payments become mostly principal — this is called a front-loaded schedule.
The formula is: PMT = P × r(1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r is the monthly rate, and n is the total number of payments.
The year-by-year chart shows how the outstanding balance shrinks over time. The bar fills left-to-right as the loan is paid down — you can see how slowly the balance drops in early years compared to later ones.
Frequently asked questions
Why is so much of my early payment interest?
Because interest is charged on the outstanding balance. When the balance is high (early in the loan), the interest portion is large. As you pay down principal, less of each payment goes to interest and more to principal. This is why extra early repayments save disproportionately large amounts of interest.
What happens if I make an extra payment?
Any extra payment goes entirely to principal, which reduces the balance on which future interest is calculated. Even one extra payment per year can shave years off a 25-year mortgage and save tens of thousands in interest.
What is the difference between a 20-year and 25-year mortgage?
A shorter term means higher monthly payments but significantly less total interest. A 5-year shorter term on a $200,000 loan at 4.5% saves roughly $25,000–$30,000 in interest, though your monthly payment rises by around $150–200. Use the calculator to compare both scenarios.
Does the calculator account for fees or insurance?
No — this calculator computes pure amortization based on principal and interest rate only. Real-world loans may include arrangement fees, mortgage insurance, or variable rates. Always check your full loan agreement for the complete cost.
What does the bar chart in the schedule mean?
Each bar represents the proportion of the original loan still outstanding at the end of that year. A fully filled bar means you still owe 100%; an empty bar means the loan is paid off. The amber portion shows the remaining balance as a share of the original principal.