Amortization Calculator

Calculate your monthly loan payment and see exactly how each payment is split between principal and interest. Our amortization calculator generates a full payment schedule so you can see your loan balance decrease month by month — useful for mortgages, auto loans, and personal loans.

Loan Amortization Calculator

Amortization Formula

The fixed monthly payment for a fully amortizing loan is calculated with:

M = P · r(1+r)ⁿ / ((1+r)ⁿ − 1)

Where M = monthly payment, P = principal, r = monthly interest rate (annual rate ÷ 12), n = total number of payments (years × 12). Each month, the interest portion decreases and the principal portion increases as the balance shrinks.

Loan TermMonthly Payment on $300,000 at 7%Total Interest
10 years$3,484$118,080
15 years$2,696$185,280
20 years$2,326$258,240
30 years$1,996$418,560

Frequently Asked Questions

What is amortization?+
Amortization is the process of paying off a loan through regular scheduled payments over time. Each payment covers both interest owed and a portion of the principal. Early in the loan, most of the payment goes toward interest. As the balance declines, the interest portion shrinks and more of each payment reduces principal — this is called a negatively amortizing curve in reverse.
How can I pay off my loan faster?+
Making extra principal payments dramatically reduces the total interest you pay and shortens your loan term. Even one extra payment per year can shave years off a 30-year mortgage and save tens of thousands in interest. You can specify extra payment amounts with your lender; ensure they apply them to principal, not future interest.

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