About this tool
Amortization schedule, explained
This amortization calculator shows your monthly payment, the total interest, the payoff date and a full schedule by year or by month. Add extra payments to see the interest and time they save. It works for personal loans, car loans and mortgages with a fixed rate.
How to use it
- 1Set the Amount, the yearly Rate in percent and the Term in years, or pick a preset such as Mortgage, Car loan or Student loan.
- 2Set the month of the First payment so the schedule shows real dates.
- 3Under "Pay extra", add an amount Every month or Once a year, or click "Add a one-off payment" for a lump sum in a given month.
- 4Read the monthly payment, Paid off, Total interest and Interest saved, then switch the chart between Balance and Yearly split and the schedule between Yearly and Monthly.
How it works
How the schedule is calculated
The monthly payment uses the standard formula for a fixed-rate loan repaid in equal monthly installments. The yearly rate is divided by 12 to get the monthly rate. At a 0% rate, the payment is simply the amount divided by the number of months.
The schedule is built month by month. Each month, interest is the remaining balance times the monthly rate, and the rest of the payment repays capital. Extra payments go straight to capital: the yearly one is paid with every twelfth payment, and a one-off payment in the month you pick. The contract payment stays the same, so extra payments shorten the loan rather than lowering the payment. The last scheduled payment settles any rounding remainder, so the capital repaid adds up to exactly the amount borrowed.
Interest saved compares the same loan with and without the extra payments, and the Balance chart draws both. With the starting values, $20,000 at 7.4% over 5 years, the payment is about $400 a month and the total interest about $3,989. Paying $100 more every month clears it 13 months early and saves about $950 in interest.
Monthly payment = P × r / (1 − (1 + r)^−n)
When to use it
Ways people use it
Compare loan offers
Enter two offers with different rates or terms and compare the monthly payment and the total interest.
Choose a loan term
See how a longer term lowers the payment but raises the total interest.
Plan an early repayment
Add a monthly top-up, a yearly bonus or a one-off lump sum and read the new payoff date and the interest saved.
Understand your mortgage
The Yearly split chart shows how early payments are mostly interest and later ones mostly capital.
FAQ
Questions people ask
What is an amortization schedule?
An amortization schedule is a table that shows how each payment on a loan is split between interest and repayment of the amount borrowed, and how much is still owed after each period. This tool shows it by year or by month, with any extra payments in their own column.
Why do I pay more interest at the start of a loan?
Interest is charged on the remaining balance. At the start the balance is highest, so a larger share of each payment goes to interest. As the balance falls, more of the same payment goes to capital.
How can I pay less interest on a loan?
A lower rate, a shorter term or extra payments toward capital all reduce total interest. Use the Pay extra settings here to measure the effect, and check whether your lender charges a fee for early repayment before making extra payments.
Does this include taxes, insurance or fees?
No. The calculator covers the loan itself: capital and interest at a fixed rate. Mortgage payments often also include property tax, insurance or fees, which you would add on top.
What does r mean in the payment formula?
r is the monthly interest rate, the yearly rate divided by 12, and n is the total number of monthly payments. P is the amount borrowed.