Estimate periodic payments, interest rates, and view the full amortization schedule.
How to use this Amortization Calculator: Enter the loan amount, annual interest rate, term in years, and choose payments per year. Optionally add a fixed extra payment per period to see how the loan shortens. The amortization schedule and totals update instantly when you click Calculate.
Disclaimer: This calculator provides estimates for informational purposes only and is not financial advice. Results may differ due to rounding, taxes, fees, or lender-specific rules.
An amortization calculator is a powerful financial tool designed to help borrowers understand the lifecycle of their loan. Whether you are taking out a mortgage for a new home, financing a car, or consolidating debt with a personal loan, understanding how your payments are structured is crucial for financial planning. Unlike simple interest loans, most long-term financing options are "amortized," meaning your monthly payments are split between paying off the interest (the cost of borrowing money) and the principal (the actual amount you borrowed).
The CalculatorBudy Amortization Calculator provides a clear, detailed breakdown of this process. It generates an amortization schedule—a table detailing each periodic payment on an amortizing loan. By using this tool, you can see exactly how much of your hard-earned money is going toward reducing your debt versus how much is being paid to the lender as profit. This transparency empowers you to make smarter financial decisions, such as refinancing your mortgage or making extra payments to become debt-free sooner.
Amortization is the process of spreading out a loan into a series of fixed payments over a set period. While the total payment amount usually remains the same each month (in fixed-rate loans), the composition of that payment changes drastically over time. This concept is often confusing for first-time borrowers, but understanding it is key to saving money.
At the beginning of your loan term, the majority of your payment goes toward interest. This is because interest is calculated based on the remaining loan balance, which is highest at the start. For example, in the first year of a 30-year mortgage, you might be surprised to see that nearly 70% or 80% of your monthly check is just paying off interest, with only a small fraction chipping away at the principal.
As you continue making payments, your principal balance slowly decreases. Because the principal is lower, the interest charged on that balance also decreases. Consequently, a larger portion of your fixed monthly payment starts going toward the principal. By the final years of the loan, almost your entire payment is applied to the principal, helping you pay off the remaining debt quickly.
Our calculator visualizes this shift perfectly. By scrolling through the generated schedule, you can pinpoint the "tipping point" where you start paying more principal than interest, giving you a tangible goal to work toward.
Using our tool is simple and intuitive. Here is a step-by-step guide to getting the most accurate results for your financial situation:
Once you have entered your data, simply click "Calculate." You will instantly see your estimated monthly payment, total interest cost, and total amount to be paid over the life of the loan. You can also export the results to a CSV file or print the schedule for your records.
One of the most valuable features of this calculator is the ability to simulate "Extra Payments." Many borrowers do not realize that paying just a little bit more than the minimum can result in massive savings. This strategy works because any extra amount you pay goes 100% toward the principal balance, bypassing interest entirely.
When you reduce the principal faster, you reduce the base upon which future interest is calculated. This creates a snowball effect: lower principal leads to lower interest charges, which means more of your next regular payment applies to principal, and so on.
Imagine you have a $250,000 mortgage at 4% interest for 30 years. Your standard payment (principal and interest) would be approximately $1,193.
Use the "Extra Payment" field in our calculator to experiment with different amounts. Try adding $50, $100, or even one extra payment per year to see how much time and money you can save.
While often associated with mortgages, an amortization schedule applies to almost any installment loan. Here are the most common uses for our calculator:
After clicking calculate, you will see a detailed table below the summary. Here is how to read it:
Reviewing this table helps you visualize your progress. Seeing the "Balance" column go down month by month can be a great psychological motivator to stick to your repayment plan.
No. This calculator focuses strictly on Principal and Interest (often abbreviated as P&I). For mortgages, lenders often collect property taxes, homeowners insurance, and private mortgage insurance (PMI) into a designated escrow account, which is added to your monthly bill. To get your full "out-of-pocket" cost, you would need to add those estimated monthly costs to the figure shown here.
Interest is calculated as a percentage of your current outstanding balance. Since your balance is highest at the start of the loan, the interest charge is also at its peak. As you pay down the debt, the interest portion will naturally decrease.
Yes! We have included buttons to "Export CSV" (which opens in Excel or Google Sheets) and "Print Schedule." We recommend saving a copy so you can track your payments manually or compare different loan offers side-by-side.
Often, yes. By paying bi-weekly (every two weeks), you end up making 26 half-payments per year, which equals 13 full monthly payments. That one extra full payment per year is applied directly to the principal, which can shave years off a typical 30-year mortgage without significantly impacting your monthly budget.
Debt doesn't have to be a mystery. With the CalculatorBudy Amortization Calculator, you have the data you need to negotiate better rates, plan for early payoff, and understand exactly where your money goes. Bookmark this page and come back whenever you need to run the numbers on a new financial goal.