Amortization Calculator
Enter a loan amount, rate and term to get the payment and a complete amortization schedule, month by month or year by year. Add an extra monthly payment to see the new payoff time and the interest you save.
Last updated November 3, 2026
Result
Monthly payment = $1,498.88
| Measure | Value |
|---|---|
| Monthly payment | $1,498.88 |
| Number of payments | 360 |
| Total of payments | $539,595.47 |
| Total interest | $289,595.47 |
| Year | Principal paid | Interest paid | Balance at year end |
|---|---|---|---|
| Year 1 | $3,070.03 | $14,916.49 | $246,929.97 |
| Year 2 | $3,259.38 | $14,727.13 | $243,670.59 |
| Year 3 | $3,460.41 | $14,526.10 | $240,210.18 |
| Year 4 | $3,673.84 | $14,312.67 | $236,536.33 |
| Year 5 | $3,900.44 | $14,086.08 | $232,635.89 |
| Year 6 | $4,141.01 | $13,845.51 | $228,494.88 |
| Year 7 | $4,396.42 | $13,590.10 | $224,098.46 |
| Year 8 | $4,667.58 | $13,318.94 | $219,430.89 |
| Year 9 | $4,955.47 | $13,031.05 | $214,475.42 |
| Year 10 | $5,261.11 | $12,725.41 | $209,214.31 |
| Year 11 | $5,585.60 | $12,400.91 | $203,628.71 |
| Year 12 | $5,930.11 | $12,056.41 | $197,698.60 |
| Year 13 | $6,295.87 | $11,690.65 | $191,402.74 |
| Year 14 | $6,684.18 | $11,302.34 | $184,718.56 |
| Year 15 | $7,096.45 | $10,890.07 | $177,622.11 |
| Year 16 | $7,534.14 | $10,452.38 | $170,087.97 |
| Year 17 | $7,998.83 | $9,987.69 | $162,089.14 |
| Year 18 | $8,492.18 | $9,494.34 | $153,596.97 |
| Year 19 | $9,015.96 | $8,970.56 | $144,581.01 |
| Year 20 | $9,572.04 | $8,414.47 | $135,008.97 |
| Year 21 | $10,162.42 | $7,824.09 | $124,846.54 |
| Year 22 | $10,789.22 | $7,197.29 | $114,057.32 |
| Year 23 | $11,454.68 | $6,531.84 | $102,602.64 |
| Year 24 | $12,161.18 | $5,825.34 | $90,441.47 |
| Year 25 | $12,911.25 | $5,075.27 | $77,530.22 |
| Year 26 | $13,707.59 | $4,278.93 | $63,822.63 |
| Year 27 | $14,553.04 | $3,433.47 | $49,269.59 |
| Year 28 | $15,450.64 | $2,535.87 | $33,818.95 |
| Year 29 | $16,403.60 | $1,582.91 | $17,415.34 |
| Year 30 | $17,415.34 | $571.17 | $0.00 |
Fixed rate, equal monthly payments, interest compounded monthly. Lender rounding and fees can change the real figures.
Show the work
Formula: payment = P × r ÷ (1 − (1 + r)^−n); interest = balance × r; principal = payment − interest.
- P = $250,000.00, r = 6% ÷ 12 = 0.5000% a month, n = 360 payments (30 years).
- Payment: $250,000.00 × 0.005000 ÷ (1 − (1 + 0.005000)^−360) = $1,498.88.
- Month 1: interest = $250,000.00 × 0.005000 = $1,250.00; principal = $1,498.88 − $1,250.00 = $248.88; new balance $249,751.12.
- Repeating this 360 times pays $539,595.47 in total, of which $289,595.47 is interest.
Result: Monthly payment = $1,498.88
How an amortization schedule is built
interest = balance × r
principal = payment − interest
new balance = balance − principal
The level payment comes from the fixed-rate formula payment = P × r ÷ (1 − (1 + r)^−n), where r is the yearly rate divided by 12 and n is the number of months. The schedule then repeats three steps for every month: charge interest on the current balance, subtract that interest from the payment, and take the rest off the balance.
Each row of the schedule applies those steps once. The formula is the standard fixed-rate payment formula. The final payment is trimmed by a few cents when needed so the balance ends at exactly zero.
See how we calculate for the formulas, sources and review schedule behind every calculator.
Also useful alongside this calculator: Roth IRA Calculator, Down Payment Calculator and Closing Cost Calculator.
Reading the schedule
Take a $250,000 loan at 6% for 30 years. The payment is $1,498.88. In month 1 the interest is $250,000 × 0.005 = $1,250.00, so only $248.88 reduces the balance to $249,751.12. The same payment in the last month is almost all principal, with $7.46 of interest.
The yearly view adds the twelve rows of each year together. In year 1 you pay $3,070.03 of principal and $14,916.49 of interest. By year 10 the split is $5,261.11 and $12,725.41, and in year 30 it is $17,415.34 and $571.17. Switch the table to every month when you need an exact row, for example to find the balance after a certain payment.
Paying extra each month
An extra amount is applied to principal in full, so next month’s interest is charged on a smaller balance and the effect grows over time. Adding $200 a month to the $250,000 loan ends it after 267 payments, which is 22 years and 3 months instead of 30 years. Total interest drops from $289,595.47 to $203,362.51, a saving of $86,232.96.
Before you rely on this, confirm that your loan has no prepayment penalty and that the lender applies the extra money to principal and not to a future due date. Some lenders need a note or a separate payment option to do that.
Comparing terms
The term decides how fast the balance falls. On $250,000 at 6%, a 10-year loan has a payment of $2,775.51 and costs $83,061.51 in interest, while a 30-year loan has a payment of $1,498.88 and costs $289,595.47. A short term costs more each month but is much cheaper overall.
With a 30-year term the balance drops below half of the original amount only in year 21, because the early payments are mostly interest. This is why a sale or refinance in the first years pays down little principal.
What the schedule does not cover
The calculator assumes a fixed rate, equal monthly payments and interest compounded monthly. It does not include property tax, insurance, fees or mortgage insurance, and it does not model adjustable rates, interest-only periods or balloon payments. For a mortgage with those costs, use the Mortgage Calculator. Terms run from 1 month up to 100 years.
General information, not financial advice
This calculator gives a general estimate from the numbers you enter. It is not financial or tax advice, and your actual results can differ. Check important decisions with a qualified professional or the official source.
Sources
Official and primary sources for the statements on this page. Their authors have not reviewed or endorsed this page.
- Consumer Financial Protection Bureau, How does paying down a mortgage work?. Explains that early payments are mostly interest and later ones mostly principal, and that lenders use a standard formula to set a payment that repays the loan by the end of the term.
- Consumer Financial Protection Bureau, What is amortization and how could it affect my auto loan?. Explains that in an amortizing loan each payment is split between principal and interest, with more going to interest early in the term. The page is filed under auto loans but describes amortizing loans in general.
How to use the Amortization Calculator
- Enter the loan amount and the yearly interest rate.
- Enter the term in years, and extra months if the term is not whole years.
- Optionally enter an extra payment for each month.
- Choose the yearly or monthly table, read the totals, then Copy, Print or Share.
Worked example
You borrow $250,000 at 6% for 30 years. The monthly rate is 0.5% and n = 360, so the payment is $250,000 × 0.005 ÷ (1 − 1.005^−360) = $1,498.88. You make 360 payments totalling $539,595.47, of which $289,595.47 is interest.
| Term | Monthly payment | Total interest |
|---|---|---|
| 10 years | $2,775.51 | $83,061.51 |
| 15 years | $2,109.64 | $129,735.57 |
| 20 years | $1,791.08 | $179,858.64 |
| 30 years | $1,498.88 | $289,595.47 |
Frequently asked questions
What does amortization mean?
It means paying a loan off in scheduled equal installments, where each installment covers that month’s interest first and reduces the balance with the rest.
Why does the balance fall so slowly at first?
Interest is charged on the full balance, which is largest at the start, so most of each early payment goes to interest and only a small part reduces the debt.
How do extra payments change the schedule?
They go to principal, so the balance shrinks faster, the loan ends in fewer payments and total interest is lower. The result rows show the new payoff time.
Can I use it for loans other than a mortgage?
Yes. Any fixed-rate loan with equal monthly payments follows the same schedule, including car, personal and student loans, for terms up to 100 years.