Financial Tool

Amortization Calculator

Create a loan amortization schedule. See how much of your monthly payment goes to principal vs. interest for mortgages and auto loans.

Loan Amount ($)

Interest Rate (%)

Term (Years)

Σ The Formula

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

Real World Examples

Home Mortgage

$300,000 at 6% for 30 years: Payment = $1,798.65/mo

Auto Loan

$25,000 at 5% for 5 years: Payment = $471.78/mo

Personal Loan

$10,000 at 8% for 3 years: Payment = $313.36/mo

# About This Calculator

An Amortization Calculator provides a roadmap for your loan. It breaks down every monthly payment into two parts: interest (the bank's profit) and principal (paying down your debt). This transparency helps you understand why loan balances decrease slowly at first and faster over time.

How Amortization Works

The Golden Rule: You pay interest on what you still owe.

Beginning: Your balance is high, so the interest chunk is large. Only a small sliver pays down principal.
Middle: As balance drops, interest drops, leaving more room for principal payment.
End: Balance is low, interest is tiny, and almost all of the payment kills off the debt.

Real-World Applications

Mortgage Planning

See exactly when you will reach 20% equity to remove PMI.

Tax Deductions

Estimate your total interest paid per year for tax deduction purposes.

Why Use This Schedule?

The most powerful use is to see the effect of Extra Payments. Even $100 extra per month goes 100% to principal, which can shave years off your loan and save tens of thousands in interest.

How To Use

Enter the total **Loan Amount**.
Enter the annual **Interest Rate**.
Enter the **Loan Term** in years (e.g., 30 for a standard mortgage).
Click **Generate Schedule** to see the monthly payment and breakdown.

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.

Can I shorten my amortization schedule?+

Yes! Making extra principal-only payments reduces your balance faster, which lowers future interest charges and shortens the total loan term.

Is this calculator accurate for mortgages?+

Yes, for standard fixed-rate mortgages. It does not account for variable rates (ARMs) or loans with balloon payments.

What happens if I miss a payment?+

Missing a payment doesn't just add a fee; it means your principal didn't drop, so next month's interest will be calculated on a higher-than-expected balance, throwing the schedule off track.

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.