Amortization Calculator
This amortization calculator tool helps you estimate a loan payment schedule by using loan amount, annual interest rate, and loan term.
Quick answer
Monthly payment is projected using a fixed-rate amortization model.
What this tells you
- •Monthly payment is projected using a fixed-rate amortization model.
- •Schedule rows split each payment into principal and interest portions.
- •Results are estimated planning outputs, not lender-issued quotes.
How to Use
- 1Enter your loan amount.
- 2Enter annual interest rate and loan term in years.
- 3Click Calculate to see payment summary and amortization schedule.
How It Works
Formula
Monthly Payment = P × r × (1+r)^n ÷ ((1+r)^n - 1), where r is monthly rate and n is total monthsEach monthly payment applies interest on remaining balance, then applies the remaining amount toward principal until balance reaches zero.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
Fixed-rate 30-year loan example
Early payments include higher interest share, while principal share increases over time.
Common mistakes
- Treating estimated schedule as a final lender payoff statement
- Ignoring taxes, insurance, fees, or escrow amounts
- Using nominal APR assumptions that differ from actual loan terms
Limitations
This model assumes fixed interest rate, fixed monthly payments, and no extra payment events. It does not include taxes, insurance, escrow, late fees, refinancing effects, or lender-specific accrual rules.