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Loan Amortization Calculator

See How Your Loan Is Paid Off Over Time

Estimate your monthly loan repayment, total interest and payoff time, then view a full amortization schedule showing how each payment is split between principal and interest.

How to use this Amortization Calculator

Use the calculator to estimate your regular loan repayment, see how much interest you could pay over the life of the loan, and understand how extra repayments may change your payoff time.

1. Enter your loan amount
Add the amount you plan to borrow.

2. Enter the interest rate
Use the annual interest rate for your loan.

3. Choose your loan term
Enter how many years you plan to repay the loan over, such as 15, 20, 25 or 30 years.

4. Add an extra monthly payment (optional)
Enter any additional amount you plan to pay each month to see how it could reduce your interest and shorten your loan term.

5. Review your results
See your regular payment, total interest, total amount paid, estimated payoff time and month-by-month amortization schedule.

Tip: Try different extra-payment amounts to see how even a small increase can change the total interest and repayment period.

Disclaimer: This calculator provides an estimate only. Actual repayments and interest may differ depending on your lender, fees, repayment frequency, compounding method and loan terms.

What is a Amortization Calculator?

An amortization calculator shows how a loan is gradually paid off through regular repayments over time. Each payment is divided between principal — the amount you borrowed — and interest, the cost charged by the lender.

At the beginning of a typical amortizing loan, a larger share of each payment may go toward interest. As the balance falls, the interest portion generally decreases and more of each payment goes toward reducing the principal.

An amortization schedule lets you see this month by month, including:

your payment amount
how much goes toward principal
how much goes toward interest
your remaining loan balance

This can be especially useful for mortgages and other long-term loans because it shows the total cost of borrowing, not just the monthly repayment.

You can also use the calculator to test extra repayments and see how paying more each month could reduce your total interest and help you repay the loan sooner.

What is a Amortization Calculator_ClearEveryday.com

How to Read an Amortization Schedule

An amortization schedule shows how each loan repayment is divided between principal and interest, and how your remaining balance changes over time.

Each row of the schedule includes:

Payment Number — Shows where you are in the repayment schedule, such as month 1, month 12 or month 60.

Payment — The total repayment made for that period. For a fixed-rate loan, this will generally remain the same until the final payment.

Principal — The portion of your payment that reduces the amount you owe. As the loan progresses, more of each payment typically goes toward principal.

Interest — The cost of borrowing for that period. As your outstanding balance falls, the amount of interest charged generally decreases.

Remaining Balance — The amount still owing after each payment. This gradually falls until the loan is fully repaid.

Why the Schedule Is Useful

Your amortization schedule makes it easier to see where your money is going and how quickly your debt is actually decreasing.

It can also help you compare loan terms, understand the effect of extra repayments and see how much interest you could potentially save by paying your loan off sooner.

How Extra Repayments Affect Your Loan

Making extra repayments can reduce your loan balance faster, which may help you pay less interest and become debt-free sooner.

When you make an additional payment, the extra amount generally reduces your principal balance. A lower balance means less interest may be charged in future periods, allowing more of your repayments to go toward paying down the loan.

Example: Adding $200 a Month

For example, imagine a $500,000 loan at 6% over 30 years.

Your regular monthly repayment would be approximately $2,998. If you added an extra $200 each month, you could potentially:

repay the loan several years earlier
save tens of thousands in interest
build equity faster
reduce your outstanding balance sooner

Your actual savings will depend on your loan terms, interest rate and how your lender applies additional repayments.

Before Making Extra Repayments

Check your loan conditions first. Some lenders allow additional repayments without fees, while others — particularly certain fixed-rate loans — may place limits on extra payments or charge fees.

Use the Extra Mortgage Payments Calculator to compare different repayment amounts and see how much time and interest you could potentially save.

Principal and Interest vs Interest-Only Loans

Understanding the difference between principal and interest and interest-only loans can help you see how your repayment structure affects your loan balance over time.

Principal and Interest (P&I)

With a principal and interest loan, each repayment covers:

Interest — the cost charged by the lender for borrowing the money.
Principal — the portion that reduces your outstanding loan balance.

As you continue making repayments, your balance gradually decreases. Over time, less of each payment generally goes toward interest and more goes toward reducing the principal.

This is the type of loan this Amortization Calculator is designed to calculate.

Interest-Only Loans

With an interest-only loan, your repayments initially cover only the interest charged on the loan. This means your principal balance generally does not decrease during the interest-only period.

When the interest-only period ends, repayments may increase because you then need to repay both principal and interest over the remaining loan term.

Why Does This Matter?

For the same loan amount, an interest-only loan can have lower repayments initially, but it may result in higher repayments later and more total interest paid.

A principal and interest loan begins reducing your debt from the start.

Using this calculator with an interest-only loan: If your interest-only period has finished, enter your remaining loan balance, current interest rate and remaining loan term to estimate the principal-and-interest repayments from that point onward.

Frequently Asked Questions

What is an amortization calculator?

An amortization calculator shows how your loan repayments are divided between principal and interest over time. It can also show your remaining loan balance after each payment and the total interest you may pay over the life of the loan.

How is a loan amortization schedule calculated?

An amortization schedule uses your loan amount, interest rate and loan term to calculate your regular repayment. Each repayment is then divided between interest and principal. As your balance decreases, the interest portion generally becomes smaller and more of your payment goes toward the principal.

Why do I pay more interest at the beginning of my loan?

Interest is calculated using your outstanding loan balance. At the beginning of the loan, your balance is at its highest, so more of each repayment goes toward interest. As the balance decreases, the amount of interest charged generally decreases as well.

What happens if I make extra repayments?

Extra repayments can reduce your outstanding principal faster. This may shorten your loan term and reduce the total interest you pay. Use the Extra Monthly Payment field in the calculator to compare different repayment amounts.

Can I pay off a 30-year mortgage early?

Yes, depending on the conditions of your loan. Making additional repayments can potentially pay off a 30-year mortgage several years earlier. The amount of time saved depends on your loan balance, interest rate and how much extra you repay.

What is the difference between principal and interest?

Principal is the amount of money you borrowed and still owe. Interest is the cost charged by the lender for borrowing that money. With a principal-and-interest loan, each repayment normally pays some interest while also reducing your principal balance.

Does this amortization calculator work for interest-only loans?

This calculator is primarily designed for principal-and-interest loans. During an interest-only period, repayments generally do not reduce the principal balance. Once the interest-only period ends, you can enter the remaining balance and remaining loan term to estimate your new principal-and-interest repayments.

Are the results from this amortization calculator exact?

No. The results are estimates and may differ from your lender's calculations due to repayment frequency, fees, interest calculation methods, rounding, rate changes and other loan conditions. Use the results for planning and comparison, and confirm exact repayment figures with your lender.

Understand Your Loan Before You Commit

An amortization schedule gives you a clearer picture of how your home loan changes over time. You can see how much of each repayment goes toward principal and interest, how your loan balance decreases, and how much interest you could pay over the life of the loan.

Understanding these numbers can help when comparing loan terms, considering extra repayments, or deciding whether refinancing could reduce your borrowing costs.

Use our other free home loan calculators to explore your options:

→ Extra Mortgage Payments Calculator — See how additional repayments could reduce your interest and help you repay your mortgage sooner.

→ Mortgage Calculator — Estimate your regular mortgage repayments based on your loan amount, interest rate and loan term.

→ Mortgage Refinance Calculator — Compare your existing home loan with a new rate and estimate whether refinancing could save you money.

Important: Calculator results are estimates only and are provided for general informational purposes. Actual repayments, interest charges and loan terms may vary between lenders. Consider confirming figures with your lender or a qualified financial professional before making financial decisions.