Amortization Calculator
Free loan amortization calculator. Enter loan amount, interest rate, and term to see your monthly payment, total interest paid, and a full month-by-month schedule showing how each payment is split between principal and interest. Perfect for mortgages, car loans, and personal loans.
Enter the loan amount, interest rate, and term to generate your amortization schedule.
Frequently Asked Questions
What is loan amortization?
Loan amortization is the process of paying off a debt with regular scheduled payments over time. Each payment covers both interest (charged on the outstanding balance) and principal (reducing the balance). Early in the loan term, most of each payment goes to interest. As the balance falls, more of each payment goes to principal.
How is the monthly payment on an amortized loan calculated?
The formula is: M = P[r(1+r)^n]/[(1+r)^n-1], where P is principal, r is monthly interest rate (annual rate / 12), and n is number of payments. For example, a £10,000 loan at 5% over 3 years: monthly rate = 0.4167%, n = 36 payments. Monthly payment = approximately £299.71.
Can I pay off my loan early using this calculator?
This calculator shows the standard amortization schedule. To see the effect of overpayments, increase the monthly payment amount - extra payments go entirely to principal, reducing your loan balance faster and cutting the total interest you pay. Even small extra payments early in the loan have a significant impact due to how interest compounds.
Learn More
Get a free tool tip every week
One practical tip, one featured tool, every Tuesday. Takes 90 seconds to read. No spam, unsubscribe any time.