Loan Amortization Calculator

How amortization works

Each payment first covers the interest that has built up on the balance, and whatever is left reduces the principal. Because the balance falls, the interest part shrinks every month and the principal part grows, even though the total payment stays the same.

Using the schedule

The schedule shows the balance after every payment, which is what you would owe if you wanted to close the loan then. It also shows when principal repayment overtakes interest, and the impact of a prepayment at any month.

Formula

Where:

P

= Loan amount

r

= Monthly interest rate

n

= Number of monthly payments

Example calculation

Important notes

• The full schedule can be downloaded as a CSV file for a spreadsheet.

Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.