Loan Amortization Calculator
Calculate how much interest and principal you'll pay over the life of your loan
About this calculator
A loan amortization calculator helps you understand the complete breakdown of your loan payments over time, showing exactly how much of each payment goes toward principal versus interest. This tool is essential for borrowers who want to see their total interest costs, remaining balance at any point, and how different loan terms affect their payments. Understanding your loan's amortization schedule helps you make informed decisions about extra payments, refinancing, or choosing between different loan options.
How to use
Enter your loan amount, interest rate, and loan term in years. The calculator will generate a complete amortization schedule showing each monthly payment broken down by principal and interest portions. Review the schedule to see your remaining balance after each payment and total interest paid over the loan's lifetime.
Frequently asked questions
What is loan amortization?
Loan amortization is the process of paying off debt through regular payments that cover both principal and interest, gradually reducing the loan balance to zero.
Why do early payments have more interest?
Interest is calculated on the remaining balance, which is highest at the beginning. As you pay down principal, less interest accrues each month.
Can I pay off my loan early?
Yes, making extra principal payments reduces total interest and shortens your loan term. Check with your lender about prepayment penalties first.