Amortization Calculator
Understand exactly how your loan is paid off. Enter the loan amount, interest rate and term to get the monthly payment, total interest, and the principal-versus-interest split of your very first payment.
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Result
An amortization schedule lists every payment; this shows the headline figures and the first month's split. Extra principal payments shorten the schedule and cut total interest.
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Save ⟶How to use the Amortization Calculator
- 1Enter the loan amount (principal).
- 2Enter the annual interest rate and the loan term in years.
- 3Read the monthly payment and total interest over the life of the loan.
- 4See how your first payment splits between interest and principal — that ratio improves every month.
What amortization means
Amortization is the process of paying off a loan with equal periodic payments. Each payment covers the interest accrued on the remaining balance first, and whatever is left reduces the principal. Because the balance falls every month, the interest portion shrinks and the principal portion grows — even though the total payment stays the same.
Early in a long loan, most of your payment is interest; by the end, almost all of it is principal. This front-loading of interest is why making extra principal payments early saves the most money.
Frequently Asked Questions
▸What is an amortization schedule?
A table showing every payment over the life of the loan, split into interest and principal, with the running balance. This calculator gives the totals and the first payment's split.
▸How do extra payments affect amortization?
Extra payments go straight to principal, which reduces all future interest and shortens the loan. Paying extra early in the term saves far more than the same amount paid later.