Amortization Calculator
Amortization is the process of paying off a loan through equal payments, where each payment covers that month's interest first and puts the rest toward principal. This calculator returns the payment and a yearly schedule of where the money goes.
Enter your figures below. Results update as you type.
Monthly payment$1,264.14
- Principal 44%
- Interest 56%
- Total interest
- $255,088.98
- Total of payments
- $455,088.98
- Paid off in
- 30 yr 0 mo
Total cost of the loan
| Amount borrowed | $200,000.00 | 43.9% |
|---|---|---|
| Total interest | $255,088.98 | 56.1% |
- Total of 360 payments
- $455,088.98
- Pay-off date
- Nov 2056
Monthly vs. bi-weekly payments
Monthly
$1,264.14Payment each month
Nov 2056Pay-off date
$255,088.98Total interest
Bi-weekly
$632.07Payment every two weeks
Dec 2050Pay-off date
$196,341.12Total interest
Bi-weekly saves $58,747.85 in interest and ends the loan 5 yr 11 mo sooner.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $2,235.45 | $12,934.18 | $197,764.55 |
| 2 | $2,385.16 | $12,784.47 | $195,379.39 |
| 3 | $2,544.90 | $12,624.73 | $192,834.48 |
| 4 | $2,715.34 | $12,454.29 | $190,119.14 |
| 5 | $2,897.19 | $12,272.44 | $187,221.95 |
| 6 | $3,091.22 | $12,078.41 | $184,130.73 |
| 7 | $3,298.25 | $11,871.39 | $180,832.49 |
| 8 | $3,519.13 | $11,650.50 | $177,313.35 |
| 9 | $3,754.82 | $11,414.81 | $173,558.54 |
| 10 | $4,006.28 | $11,163.35 | $169,552.25 |
| 11 | $4,274.59 | $10,895.04 | $165,277.66 |
| 12 | $4,560.87 | $10,608.76 | $160,716.79 |
| 13 | $4,866.32 | $10,303.31 | $155,850.47 |
| 14 | $5,192.23 | $9,977.41 | $150,658.24 |
| 15 | $5,539.96 | $9,629.67 | $145,118.28 |
| 16 | $5,910.98 | $9,258.65 | $139,207.30 |
| 17 | $6,306.85 | $8,862.78 | $132,900.45 |
| 18 | $6,729.23 | $8,440.40 | $126,171.22 |
| 19 | $7,179.90 | $7,989.73 | $118,991.32 |
| 20 | $7,660.75 | $7,508.88 | $111,330.57 |
| 21 | $8,173.81 | $6,995.83 | $103,156.76 |
| 22 | $8,721.22 | $6,448.41 | $94,435.54 |
| 23 | $9,305.30 | $5,864.33 | $85,130.24 |
| 24 | $9,928.49 | $5,241.14 | $75,201.75 |
| 25 | $10,593.42 | $4,576.21 | $64,608.32 |
| 26 | $11,302.88 | $3,866.75 | $53,305.44 |
| 27 | $12,059.86 | $3,109.78 | $41,245.58 |
| 28 | $12,867.53 | $2,302.10 | $28,378.06 |
| 29 | $13,729.29 | $1,440.34 | $14,648.77 |
| 30 | $14,648.77 | $520.87 | $0.00 |
- Balance
- Interest paid
- Total paid
How the Amortization calculation works
Interest this month = balance x (annual rate / 12); principal this month = payment - interest
Because interest is charged on the remaining balance, the interest share shrinks every month and the principal share grows. That is why extra payments early in a loan save far more than the same payments made late.
Frequently asked questions
What is an amortization schedule?
It is a table listing every payment of a loan, split into interest and principal, with the balance left afterward. Lenders are required to provide one for most consumer loans.
Can I pay off an amortized loan early?
Usually yes. Extra principal shortens the term and cuts total interest. Check your contract for a prepayment penalty, then model the saving with the loan payoff calculator.
How do I calculate an amortization schedule?
Work out the fixed payment first. Then, for each month, multiply the balance by the monthly rate to get the interest, subtract that from the payment to get the principal, and take the principal off the balance. Repeat until the balance reaches zero.
Why does most of my payment go to interest at the start?
Interest is charged on what you still owe, and at the start you owe almost everything. On $200,000 at 6.5% over 30 years the payment is $1,264.14, and $1,083.33 of the first one is interest. As the balance falls, more of each payment goes to principal.
What is the difference between amortization and depreciation?
Both spread a cost over time. For a loan, amortization means repaying it through regular payments. In accounting, amortization writes off intangible assets such as patents, while depreciation writes off physical assets such as vehicles and equipment.
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