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Loan amortization calculator

The whole schedule of a loan, payment by payment.

Reviewed by Victor Yuki Matusita on . First published .

Your numbers stay on your device
$
%
years

Monthly payment

$495.03/mo

Over 5 years at 7% you'll pay $29,702, of which $4,702 is interest.

  • Principal $25,000 · 84%
  • Interest $4,702 · 16%

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Amortization schedule

How to use the amortization calculator

  1. Enter the loan amount, the yearly rate and the term in years.
  2. Read the monthly payment and how much of the total goes to interest.
  3. Open the schedule: each year shows its balance, and opening a year shows its payments.
  4. Save the schedule as a PDF or a CSV to open it in a spreadsheet.

How amortization works

The formula

The payment is M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount, r is the yearly rate divided by 12 and n is the number of months.

Each month, interest = balance × r, rounded to the cent; principal = M − interest; the new balance is the old one minus that principal. Early payments are mostly interest; late ones are mostly principal.

Assumptions

  • A fixed rate and equal monthly payments for the whole term.
  • Interest is charged once a month at the yearly rate divided by 12, on the balance, rounded to the cent; the rest of the payment lowers the balance.
  • The last payment is whatever closes the balance, so it can differ from the others by a few cents.
  • No fees, insurance or taxes are included.

Worked example

This is the example the calculator opens with, worked out by the same engine you use above.

You enter
Loan amount$25,000.00
Rate7%
Loan term5 years
You get
Monthly payment$495.03
Interest$4,701.82
Total of payments$29,701.82
Last payment$495.05
Number of payments60 payments

Over 5 years at 7% you'll pay $29,702, of which $4,702 is interest.

Sources

Educational tool

This calculator is an educational tool, not financial advice and not a loan offer. Your lender sets your rate and payment.

More amortization calculators

Amortization calculators that each answer one question
CalculatorWhat it answers
Balloon loan calculatorThe payment of a balloon loan and what is left due at the end.

Questions about amortization

Why does so much of the first payment go to interest?

Interest is charged on the balance, and the balance is largest at the start. As it goes down, the interest part shrinks and more of the same payment lowers the balance.

What does each year in the schedule show?

The balance left at the end of that loan year. Open a year to see its payments one by one: the amount, the principal, the interest and the balance after each.

Why is the last payment different?

The payment and the interest of each month are rounded to the cent, and the last payment closes whatever is left, so it can be a few cents more or less.

Can I use it for any loan?

For any loan with a fixed rate and equal monthly payments: a mortgage, a car loan, a personal or student loan. A loan with a balloon at the end has its own calculator.

Privacy

Your numbers stay on your device. The calculator runs in your browser, so nothing you type is sent anywhere, and the link you copy keeps the numbers after the #, a part of the address your browser never sends.