Is the Amortization Calculator free to use?

Yes, our Amortization Calculator is completely free to use with no registration required.

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Amortization Calculator

Calculate your loan amortization schedule with extra payments. See how much interest you can save and pay off your loan faster with our free online tool.

Loan Amount ($)

Annual Interest Rate (%)

Years

Months

Start Date

Extra Payments

Recurring Extra Payment ($)

Frequency

One-time Extra Payment ($)

Apply One-time at Month #

Monthly Payment

$1,432.86

Total Interest

$124,743.02

(without extra: $143,886.91)

Interest Saved

$19,143.89

with extra payments

Time Saved

2y 4m

212 months total

Formula

\text{PMT} = P \times \frac{r(1+r)^t}{(1+r)^t - 1}

Where $P$ = principal, $r$ = monthly rate, $t$ = total months

Amortization Schedule

#	Date	Payment	Principal	Interest	Extra	Balance
1	Aug 2026	$1,532.86	$532.86	$1,000.00	$100.00	$199,467.14
2	Sep 2026	$1,532.86	$535.53	$997.34	$100.00	$198,931.61
3	Oct 2026	$1,532.86	$538.20	$994.66	$100.00	$198,393.41
4	Nov 2026	$1,532.86	$540.90	$991.97	$100.00	$197,852.51
5	Dec 2026	$1,532.86	$543.60	$989.26	$100.00	$197,308.91
6	Jan 2027	$1,532.86	$546.32	$986.54	$100.00	$196,762.60
7	Feb 2027	$1,532.86	$549.05	$983.81	$100.00	$196,213.55
8	Mar 2027	$1,532.86	$551.79	$981.07	$100.00	$195,661.75
9	Apr 2027	$1,532.86	$554.55	$978.31	$100.00	$195,107.20
10	May 2027	$1,532.86	$557.33	$975.54	$100.00	$194,549.87
11	Jun 2027	$1,532.86	$560.11	$972.75	$100.00	$193,989.76
12	Jul 2027	$1,532.86	$562.91	$969.95	$100.00	$193,426.85

Loan Summary

Original Loan: $200,000.00

Total Payments: $324,743.02

Total Interest: $124,743.02

Payoff Time: 212 months (17 years 8 months)

How to Use

1
Enter your loan amount, annual interest rate, and loan term
2
Set a start date for the amortization schedule
3
Optionally add recurring extra payments (monthly, quarterly, or yearly)
4
Optionally add a one-time extra payment at a specific month
5
View the full amortization schedule with interest savings comparison
6
Understanding the key inputs — your loan amount is the principal borrowed, the interest rate is your annual percentage rate (APR), and the loan term is how many years you have to repay
7
Interpreting the results — each row of the schedule shows your payment number, how much goes to interest vs. principal, and your remaining balance after that payment
8
Compare scenarios by toggling extra payments on and off to see how much you save in total interest and how many months you shave off your payoff date

Examples

Good Examples

£100,000 loan at 6% for 20 years

Monthly payment: £716.43. Total interest: £71,943

Same loan with £100/month extra

Payoff in 191 months (49 months early). Save £16,788 in interest

Comparing 15-year vs 30-year mortgage (£200,000 at 5.5%)

15-year: £1,634/mo, total interest £94,140. 30-year: £1,136/mo, total interest £208,808. Shorter term saves £114,668

How to reduce total interest with biweekly payments

Pay half your monthly payment every 2 weeks — results in 13 full payments per year instead of 12, cutting years off your loan

Car loan amortization: £25,000 at 7% for 5 years

Monthly payment: £495.03. Total interest: £4,702. After 2 years, remaining balance: £16,030

Bad Examples

Forgetting to check for prepayment penalties

Some lenders charge fees for early payoff — always check first

Confusing amortization with simple interest

Amortization reduces interest over time as principal decreases

Comparing amortization schedules from different lenders without matching loan terms

A lower rate on a longer term may still cost more in total interest — always compare total cost, not just the monthly payment

Assuming the interest-to-principal ratio stays the same throughout the loan

Early payments are mostly interest; later payments are mostly principal. This shift is a key feature of amortization

Common Mistakes

Not accounting for the start date — affects payment schedule dates
Forgetting to check for prepayment penalties before making extra payments
Confusing the interest portion with the principal portion of each payment
Assuming all extra payments go to principal — clarify with your lender
Comparing loans based only on monthly payment without looking at total interest paid over the life of the loan
Ignoring that refinancing resets your amortization schedule — you restart the interest-heavy early years
Not understanding negative amortization — if your payment is less than the interest charged, your balance actually grows
Confusing amortization with depreciation — amortization applies to loans, depreciation to assets

Frequently Asked Questions

What is an amortization schedule?

An amortization schedule is a table showing each loan payment broken down into principal and interest portions, plus the remaining balance after each payment. Early payments are mostly interest, while later payments are mostly principal.

How do extra payments help?

Extra payments go directly toward the principal balance. This reduces the amount on which interest is calculated, saving you money on interest and shortening the loan term. Even small extra payments can make a big difference over time.

Should I check for prepayment penalties?

Yes — some lenders charge fees for paying off a loan early. Always check your loan agreement or ask your lender before making extra payments to avoid unexpected charges.

How is the monthly payment calculated?

The monthly payment uses the formula: $\text{PMT} = P \times \frac{r(1+r)^t}{(1+r)^t - 1}$ , where $P$ is the loan amount, $r$ is the monthly interest rate, and $t$ is the number of months.

What is the difference between amortization and simple interest?

Amortized loans spread payments evenly across the loan term with each payment covering both principal and interest, while simple interest loans calculate interest only on the remaining principal. Amortization results in higher total interest over long loan terms because early payments are interest-heavy.

How do I read an amortization schedule step by step?

Each row of an amortization schedule shows the payment number, payment amount, portion going to interest, portion going to principal, and remaining balance. Start from the top and follow each row down to see how the interest portion decreases and the principal portion increases over time.

How does loan term length affect my amortization schedule?

A longer loan term results in lower monthly payments but significantly more total interest paid over the life of the loan. A shorter term means higher monthly payments but much less interest overall, and your principal balance decreases much faster.

Amortization schedule for a 30-year fixed mortgage — what should I expect?

For a 30-year fixed mortgage, early payments are heavily weighted toward interest — in the first year, roughly 70-80% of each payment goes to interest. Over time, this ratio flips, and by the final years nearly all of each payment reduces the principal balance.

How to calculate amortization for a car loan?

To calculate amortization for a car loan, enter the vehicle price minus your down payment as the loan amount, your annual interest rate, and the loan term (typically 36-72 months). The calculator will generate a full schedule showing how each monthly payment splits between principal and interest.

What is negative amortization and why is it risky?

Negative amortization happens when your monthly payment is less than the interest charged, causing the unpaid interest to be added to your loan balance. This means your debt actually grows over time instead of shrinking, which can lead to owing more than you originally borrowed.