Amortization Calculator
Generate a full loan amortization schedule showing how each payment is split between principal and interest.
Monthly Payment
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Total Interest
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Total Amount Paid
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Payoff Date
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What is Amortization?
Amortization is the process of spreading a loan into a series of fixed payments. Each payment covers both interest and principal, with early payments being mostly interest and later payments being mostly principal.
Frequently Asked Questions
Why do I pay more interest at the beginning?
Interest is calculated on the remaining balance. Since the balance is highest at the start, more of each payment goes toward interest. As you pay down the principal, less interest accrues and more goes to principal.
How do extra payments help?
Extra payments go directly toward the principal, reducing the balance faster. This means less interest accrues in future months, which can significantly shorten the loan term and save thousands in interest.