📊 Amortization Calculator

Calculate your loan amortization schedule and see how payments are split between principal and interest.

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What is Amortization?

Amortization is the process of paying off a debt over time through regular payments. A portion of each payment is for interest while the remaining amount is applied to the principal balance. Over time, the interest portion decreases and the principal portion increases, but the payment amount remains constant.

Understanding Your Amortization Schedule

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and interest that comprise each payment until the loan is paid off at the end of its term. While the total payment remains equal each period, the portion going toward principal increases while the portion going toward interest decreases.

Early Payments: In the early years of a loan, most of your payment goes toward interest. As you continue making payments, more of each payment goes toward reducing the principal.
Fixed-Rate Loans: This calculator works for fixed-rate loans where the interest rate remains constant throughout the loan term. Adjustable-rate mortgages (ARMs) require different calculations.

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