Amortization calculator
Enter the loan amount, the annual interest rate, and the term in years. The calculator shows the monthly payment and a year-by-year schedule of interest, principal, and remaining balance as you type.
Use it to see how each payment splits between interest and principal, and how the balance falls year by year over the life of a loan.
Monthly payment
$1,073.64
- Total interest
- $186,511.57
- Total paid
- $386,511.57
Yearly schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $9,933 | $2,951 | $197,049 |
| 2 | $9,782 | $3,102 | $193,948 |
| 3 | $9,623 | $3,260 | $190,687 |
| 4 | $9,457 | $3,427 | $187,260 |
| 5 | $9,281 | $3,603 | $183,657 |
| 6 | $9,097 | $3,787 | $179,871 |
| 7 | $8,903 | $3,981 | $175,890 |
| 8 | $8,699 | $4,184 | $171,706 |
| 9 | $8,485 | $4,398 | $167,307 |
| 10 | $8,260 | $4,623 | $162,684 |
| 11 | $8,024 | $4,860 | $157,824 |
| 12 | $7,775 | $5,109 | $152,716 |
| 13 | $7,514 | $5,370 | $147,346 |
| 14 | $7,239 | $5,645 | $141,701 |
| 15 | $6,950 | $5,933 | $135,768 |
| 16 | $6,647 | $6,237 | $129,531 |
| 17 | $6,328 | $6,556 | $122,975 |
| 18 | $5,992 | $6,891 | $116,083 |
| 19 | $5,640 | $7,244 | $108,839 |
| 20 | $5,269 | $7,615 | $101,225 |
| 21 | $4,879 | $8,004 | $93,220 |
| 22 | $4,470 | $8,414 | $84,806 |
| 23 | $4,039 | $8,844 | $75,962 |
| 24 | $3,587 | $9,297 | $66,665 |
| 25 | $3,111 | $9,772 | $56,893 |
| 26 | $2,611 | $10,272 | $46,621 |
| 27 | $2,086 | $10,798 | $35,823 |
| 28 | $1,533 | $11,350 | $24,473 |
| 29 | $953 | $11,931 | $12,541 |
| 30 | $342 | $12,541 | $0 |
The result updates as you type. The bar splits the total paid into principal and interest, and the table breaks the loan down year by year.
How does it work?
Each payment is split into interest on the current balance and principal that reduces it. Early payments are mostly interest; later ones mostly principal. You supply the rate.
Amortization formula
- M
- Monthly payment.
- P
- Loan amount.
- r
- Monthly interest rate (annual rate ÷ 100 ÷ 12).
- n
- Total number of monthly payments (years × 12).
200,000 at 5% over 30 years gives a payment of about 1,073.64; in year 1 about 9,933 goes to interest and 2,951 to principal.
Method & sources
The loan is fully amortizing with a fixed rate and equal monthly payments. Each payment is split into interest on the current balance and principal that reduces it. The schedule groups the monthly payments into years of the loan; the final payment trims any rounding tail.
Sources
Where this method comes from — use these references to understand the formula, assumptions, and limits.
- What is an amortization schedule? — U.S. Consumer Financial Protection Bureau, verified 2026-06-10
How we calculate
- The loan is fully amortizing with a fixed rate and equal monthly payments.
- Each payment is split into interest on the current balance and principal that reduces it.
- The schedule groups the monthly payments into years of the loan; the final payment trims any rounding tail.
- The rate is fixed for the whole term and you supply it yourself.
- Fees, insurance, taxes, extra payments, and rate changes over time are not included.
Rounding
The payment and totals are rounded to two decimals for display; the schedule rounds to whole currency units. The calculation uses full precision.
What this calculator does
Amortization is the process of paying off a loan in equal instalments where each payment covers the interest due and reduces the balance. Early on, most of the payment is interest; later, most of it is principal. This calculator finds the fixed monthly payment and builds a year-by-year schedule showing how much interest and principal you pay and what's left to repay.
How to use it
- Enter the loan amount.
- Enter the annual interest rate as a percentage.
- Enter the term in years.
- Read the monthly payment and scroll the yearly schedule below.
Reading the schedule
Each row is one year of the loan. The interest and principal columns show how much of that year's payments went to each, and the balance column shows what is left to repay at the end of the year. Watch the principal column grow and the interest column shrink over time.
A worked example
A 200,000 loan at 5% over 30 years has a payment of about 1,073.64. In the first year roughly 9,933 goes to interest and 2,951 to principal; over the full term you pay about 186,512 in interest.
When it's useful
Understanding why a loan costs so much in early years, deciding whether to overpay, or comparing how the split changes between a shorter and a longer term.
FAQ
- Why is so much of an early payment interest?
- Interest is charged on the outstanding balance, which is largest at the start. As the balance falls, the interest portion shrinks and more of each payment reduces the principal.
- Does the schedule show every month?
- It groups payments into years to stay readable. Each row totals that year's interest and principal and shows the balance at year end.
- What happens at a 0% rate?
- With no interest, every payment is pure principal, the payment is the loan amount divided by the number of months, and total interest is zero.
- Can I include extra payments?
- No. This schedule assumes equal payments with no overpayments. Extra payments would shorten the term and cut total interest.
- Which currency does it use?
- The currency follows the site language. The amortization math is identical in every market.
- Can I share a calculation?
- Yes. Use Share to copy a link that reopens the calculator with the same amount, rate, and term.
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