Amortization Calculator

Loan Term

years

Loan Amount

250K

Annual Interest Rate

Loan Start Date

Monthly Payment

$1,580.17

1.6K

$250,000

250K · Principal

$318,861

319K · Total Interest

Principal 44%

Interest 56%

Total Paid

$568,861

569K

Payoff Date

Feb 2056

360 payments

Interest Ratio

56.1%

of total paid

Amortization Schedule

See how your loan balance reduces over time with each payment

Year	Payment	Principal	Interest	Balance
1	$18,962	$2,794	$16,168	$247,206
2	$18,962	$2,981	$15,981	$244,224
3	$18,962	$3,181	$15,781	$241,043
4	$18,962	$3,394	$15,568	$237,649
5	$18,962	$3,621	$15,341	$234,027
6	$18,962	$3,864	$15,098	$230,163
7	$18,962	$4,123	$14,839	$226,041
8	$18,962	$4,399	$14,563	$221,642
9	$18,962	$4,694	$14,269	$216,948
10	$18,962	$5,008	$13,954	$211,940

What Is Amortization?

How loan payments are split between principal and interest over time

Amortization is the process of spreading a loan into a series of fixed payments over time. Each payment covers both interest and principal, but the ratio between them changes throughout the loan term.

In the early years of a loan, a larger portion of each payment goes toward interest. As you pay down the principal, the interest portion decreases and more of your payment goes toward the principal balance.

The cross-over point is the moment when your principal payment first exceeds the interest portion — a milestone that shows you're making significant progress on paying down your loan.

Amortization Formula & How It Works

The standard formula used to calculate fixed monthly loan payments

The monthly payment for an amortized loan is calculated using:

M = P × [r(1 + r)^n] / [(1 + r)^n - 1]

M = Monthly payment

P = Principal (loan amount)

r = Monthly interest rate (annual rate / 12 / 100)

n = Total number of payments (years × 12)

Example: $250,000 mortgage at 6.5% for 30 years

Monthly rate (r) = 6.5% / 12 / 100 = 0.005417
Total payments (n) = 30 × 12 = 360
Monthly payment = $250,000 × [0.005417 × (1.005417)^360] / [(1.005417)^360 - 1]
Monthly payment = $1,580.17
Total interest over 30 years = $318,861

How to Use This Calculator

Step-by-step guide to generating your amortization schedule

Select a loan type

Choose from Mortgage, Auto Loan, Personal Loan, Student Loan, or enter custom values. Presets automatically fill typical defaults.

Enter your loan details

Set the loan amount, annual interest rate, and loan term in years. Adjust using the sliders or type directly.

Add extra payments (optional)

Open the "Extra Payments" section to see how additional monthly, yearly, or one-time payments reduce your total interest and payoff timeline.

Review your results

See your monthly payment, total interest, payoff date, and the cross-over point. The chart visualizes how principal and interest build over time.

View the full schedule

Switch between yearly and monthly views to see exactly how each payment is allocated between principal and interest.

Types of Amortized Loans

Common loan types that use amortization schedules

Loan Type	Typical Term	Typical Rate	Key Feature
Mortgage	15-30 years	5.5-7.5%	Fixed or adjustable rate, largest consumer loan
Auto Loan	3-7 years	5-10%	Secured by vehicle, shorter term
Personal Loan	1-5 years	8-20%	Unsecured, higher rates, flexible use
Student Loan	10-25 years	4-8%	Federal or private, may have deferment options