Loan Amortization Calculator

See your complete payment schedule with detailed breakdown of principal, interest, and remaining balance for each payment

Payment ScheduleInterest BreakdownPrincipal ReductionPayoff Strategy

Loan Amortization Calculator

Enter loan details above to see your amortization schedule

Amortization Tips

• Early payments are mostly interest

• Later payments are mostly principal

• Extra payments reduce total interest

• Shorter terms save more interest

• Use for refinancing decisions

Loan Amortization Calculator - Understand Your Complete Payment Schedule

Our free loan amortization calculator shows you exactly how each payment is split between principal and interest over the life of your loan. Understanding your amortization schedule helps you make informed decisions about extra payments, refinancing, and loan payoff strategies.

What is Loan Amortization?

Loan amortization is the process of paying off a loan over time through regular payments. Each payment consists of two parts: interest (what you pay the lender for borrowing money) and principal (what reduces your loan balance). Early in the loan, most of your payment goes toward interest. Later in the loan, most goes toward principal.

How to Use the Amortization Calculator

  1. Enter your loan amount, interest rate, and loan term
  2. Add any extra monthly payment if you plan to pay more
  3. View your complete payment schedule month by month
  4. See how each payment is split between principal and interest
  5. Track your remaining balance after each payment
  6. Plan your payoff strategy with extra payments

Understanding Your Amortization Schedule

Early Payments (Years 1-5)

  • Mostly interest payments
  • Slow principal reduction
  • High total interest cost
  • Limited equity building

Later Payments (Years 20-30)

  • Mostly principal payments
  • Fast principal reduction
  • Lower total interest cost
  • Rapid equity building

Benefits of Understanding Amortization

  • Extra Payment Planning: See exactly how extra payments affect your loan
  • Refinancing Decisions: Understand the true cost of refinancing
  • Tax Planning: Know how much interest you can deduct
  • Equity Building: Track your home or asset equity over time
  • Loan Comparison: Compare different loan terms effectively

Strategies for Faster Loan Payoff

Understanding your amortization schedule helps you develop strategies to pay off your loan faster and save on interest. Consider making extra payments, bi-weekly payments, or refinancing to a shorter term if your financial situation allows.

When to Consider Refinancing

Use the amortization calculator to see how much interest you'll pay over the remaining term of your current loan. Compare this with the total cost of a new loan (including closing costs) to determine if refinancing makes financial sense.

Tips for Using the Amortization Calculator

  • Use realistic interest rates based on current market conditions
  • Consider different loan terms to see their impact
  • Experiment with extra payment amounts
  • Compare fixed vs. adjustable rate scenarios
  • Use for both new loans and existing loan analysis