How to use the amortization calculator
Enter the loan amount, annual interest rate, and loan term in years. The result shows the fixed monthly payment and overall repayment totals.
This summary assumes equal monthly payment intervals and no extra principal, fees, or rate changes. Compare terms using both the payment and the total interest.
Standard amortizing loan payment
The annual rate is divided by 12 to get a monthly rate and the term in years is multiplied by 12 to get the number of payments.
Total interest equals total scheduled payments minus the original principal. This summary assumes every payment is made on time and the rate does not change.
Example: Daniel separates principal from interest
Daniel borrows $100,000 for 10 years at a fixed annual rate of 6%. The monthly payment is approximately $1,110.21. In the first month, interest is $100,000 × 0.06 ÷ 12 = $500. The remaining $610.21 reduces the principal.
The following month starts with a lower balance, so its interest charge is slightly smaller. This calculator summarizes the repayment totals. For a payment-by-payment schedule, use the Loan Payment Calculator linked below.
Example: the first three loan payments
For a $100,000 loan at 6% over 10 years, a monthly payment of about $1,110.21 starts with $500 of interest. The rest reduces principal. These rounded example rows show why the interest share falls as the balance decreases.
The calculator above provides a payment and totals summary. For an interactive payment-by-payment schedule and extra-payment comparisons, use the Loan Payment Calculator.
| Payment | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $500.00 | $610.21 | $99,389.79 |
| 2 | $496.95 | $613.26 | $98,776.53 |
| 3 | $493.88 | $616.33 | $98,160.20 |
Assumptions and limitations
What the estimate assumes
Does not model variable rates, fees, late payments, skipped payments, or escrowed costs.
Important limitation 2
Payment timing is modeled monthly.
Amortization Calculator FAQs
What is an amortized loan?
It is a loan repaid through scheduled payments that cover interest and reduce principal so the modeled balance reaches zero by the end of the term.
Why is more of the early payment interest?
Interest is calculated from the outstanding balance. The balance is largest near the beginning, so the interest portion is usually largest then.
Can a 0% loan be amortized?
Yes. With no interest, the payment is simply the principal divided by the number of scheduled payments.
Is this the same as a mortgage calculator?
The loan math is similar, but a mortgage payment can also include property taxes, homeowners insurance, mortgage insurance, and HOA dues.
What does remaining principal mean?
Remaining principal is the unpaid portion of the original loan balance after scheduled principal payments have been applied. It does not include future interest that has not yet accrued.
Why can a lender's schedule differ by a few cents?
Lenders can use different payment dates, day-count rules, and rounding conventions. This calculator uses a monthly fixed-rate model and cent-level display rounding, so small differences can occur.
For planning and educational use. Actual loan statements can differ because of fees, payment timing, rounding, and lender-specific rules.