Amortization Calculator
Free Amortization Calculator - calculate instantly with our online tool. No signup required. Accurate mortgage calculations with real-time results.
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Reviewed & Methodology
Every calculator is built using industry-standard formulas, validated against authoritative sources, and reviewed by a credentialed financial professional. All calculations run privately in your browser - no data is stored or shared.
How to Use the Amortization Calculator
- 1. Enter your values - fill in the input fields with your numbers.
- 2. Adjust settings - use the sliders and selectors to customize your calculation.
- 3. View results instantly - calculations update in real-time as you change inputs.
- 4. Compare scenarios - adjust values to see how changes affect your results.
- 5. Share or print - copy the link, share results, or print for your records.
Amortization Calculator
This amortization calculator computes your monthly loan payment, total interest paid, and total cost for any fixed-rate loan. It also generates a full amortization schedule showing how each payment is split between principal and interest over the life of the loan — helpful for mortgages, car loans, and personal loans.
How Amortization Is Calculated
The monthly payment for a fully amortizing loan is computed with the standard annuity formula:
M = P x [r(1 + r)^n] / [(1 + r)^n - 1]
Where P is the loan principal, r is the monthly interest rate (annual rate / 12 / 100), and n is the total number of monthly payments (years x 12). Each month, interest is charged on the remaining balance, and the rest of the payment reduces the principal.
Example
| Loan Amount | Interest Rate | Term | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|---|---|
| $250,000 | 6.5% | 30 yr | $1,580 | $319,000 | $569,000 |
| $250,000 | 6.5% | 15 yr | $2,178 | $142,000 | $392,000 |
| $400,000 | 7.0% | 30 yr | $2,661 | $558,000 | $958,000 |
| $150,000 | 5.0% | 20 yr | $990 | $87,500 | $237,500 |
Key Factors That Affect Amortization
- Interest rate — even a 0.5% difference on a $300,000 loan changes total interest by roughly $30,000 over 30 years
- Loan term — shorter terms have higher monthly payments but dramatically lower total interest
- Principal amount — interest is computed on the remaining balance, so a larger loan compounds more interest
- Extra payments — even small additional principal payments early in the loan significantly reduce total interest
- Payment frequency — biweekly payments effectively add one extra monthly payment per year
Tips
- Compare 15-year and 30-year terms side by side — a 15-year mortgage typically saves over 50% in total interest
- In the early years of a 30-year loan, roughly 70-80% of each payment goes to interest; this ratio flips over time
- Making one extra payment per year on a 30-year mortgage can shorten the loan by about 4-5 years
- Print the full amortization schedule to track exactly when your loan crosses the halfway point on principal
Frequently Asked Questions
What is an amortization schedule?
Why do I pay so much interest at the beginning of my loan?
How does loan term affect total interest paid?
Can I use this calculator for car loans and personal loans?
How do extra payments affect my amortization schedule?
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