Financial Tool

Amortization Calculator

Generate a detailed monthly payment schedule for your loan.

Loan Amount ($)

Interest Rate (%)

Term (Years)

Σ The Formula

M = P [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ – 1 ]

Real World Examples

Personal Loan

$10,000 at 8% for 3 years → $313.36/mo

Mortgage

$250,000 at 6% for 30 years → $1,498.88/mo

# About This Calculator

An amortization calculator helps you visualize how a loan is paid off over time. Unlike a simple loan calculator, amortization shows the internal mechanics of each payment—specifically how much goes to interest versus the principal balance.

In the early years of a long-term loan (like a mortgage), a large percentage of your monthly payment is applied to interest. As the balance decreases, the interest portion shrinks, and the principal portion grows until the loan is fully satisfied.

Our calculator provides both the monthly payment figure and a detailed schedule so you can plan your finances with precision.

How To Use

Enter the **Loan Amount**.
Enter the **Annual Interest Rate**.
Enter the **Loan Term** in years.
Click **Calculate** to see the payment and the first 5 years of the schedule.

Frequently Asked Questions

What is an amortization schedule?+

It is a table detailing each periodic payment on an amortizing loan. It shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

Why does the interest decrease over time?+

Interest is calculated based on your remaining balance. As you pay off the principal, your balance gets smaller, so the next month's interest charge (a percentage of that balance) also gets smaller.

Is Amortization Calculator free to use?+

Yes, Amortization Calculator on Matheric is completely free to use. We believe in accessible education and utility for everyone.

How accurate is Amortization Calculator?+

We use standard mathematical formulas and high-precision computing algorithms to ensure results for Amortization Calculator are accurate for academic and professional use.

Can I use Amortization Calculator on my phone?+

Yes! Amortization Calculator is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.

Do you save my data?+

No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.

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