Calculate your loan payments, total interest, and create detailed amortization schedules for mortgages, car loans, and personal loans. Plan extra payments and see how they affect your loan payoff timeline.
| # | Date | Interest | Principal | Extra | Payment | Ending balance |
|---|
An amortization calculator is a financial tool that helps you determine your monthly loan payments and shows how much of each payment goes toward principal versus interest over the life of your loan. Our free amortization calculator works for mortgages, car loans, personal loans, and other fixed-rate installment loans.
Loan amortization is the systematic repayment of a loan over time through regular payments. Each payment consists of two parts:
Early in the loan term, more of your payment goes toward interest. As the balance decreases, more goes toward principal. This creates the characteristic "amortization curve" you can see in our calculator's chart.
Home loans are the most common type of amortized loan. Whether you have a 15-year, 30-year, or other fixed-rate mortgage, our calculator helps you understand your payment structure and the impact of extra payments on your payoff timeline.
Car loans typically range from 2-7 years and use amortization schedules. Calculate your monthly car payment and see how different loan terms affect your total interest costs.
Fixed-rate personal loans for debt consolidation, home improvements, or other purposes follow amortization principles. Use our calculator to compare different loan offers and terms.
Federal and private student loans with fixed rates use amortization. Understanding your payment schedule helps with budgeting and repayment planning.
Making extra payments toward your loan principal can significantly reduce the total interest you pay and shorten your loan term. Our calculator shows three types of extra payments:
Adding a fixed amount to each monthly payment. Even an extra $50-100 per month can save thousands in interest over the loan life.
Making an additional payment once per year, often using tax refunds or bonuses. This strategy is particularly effective for mortgages.
Making a large extra payment at a specific point, such as after receiving an inheritance or selling an asset.
The amortization schedule shows the breakdown of each payment throughout your loan term. Key columns include:
| Column | Description |
|---|---|
| Payment # | Sequential payment number from 1 to total payments |
| Date | When the payment is due based on your start date |
| Interest | Portion of payment going to interest (decreases over time) |
| Principal | Portion of payment reducing the loan balance (increases over time) |
| Extra | Any additional payments applied to principal |
| Payment | Total amount paid that month (regular + extra) |
| Ending Balance | Remaining loan balance after the payment |
Try different extra payment scenarios to see which strategy works best for your situation:
For business loans and tax purposes, understanding amortization is crucial. Business startup costs, intangible assets, and certain expenses can be amortized for tax purposes under IRS Section 197. Common amortizable business assets include:
Consult with a tax professional for specific guidance on business amortization and deductions.
Enhance your financial planning with these additional calculators: