Calculate monthly payment, total interest and amortization schedule.
An amortized loan requires fixed periodic payments that cover both principal and interest. With each payment, you pay down the principal balance while also covering the interest charges. Our loan calculator helps you visualize this process with a detailed amortization schedule and chart.
Many consumer loans fall into the category of amortized loans with regular payments spread uniformly over their lifetime. Common examples include:
In the early stages of repayment, a larger portion of each payment goes toward interest rather than principal. As the loan balance decreases, the interest portion of each payment becomes smaller, and more of your payment goes toward reducing the principal. This calculator shows you exactly how this process unfolds over the life of your loan.
Making additional payments directly toward your principal can significantly reduce both the loan term and total interest paid. Even small regular extra payments can shave months or years off your loan and save you thousands in interest charges.
Principal: The original amount borrowed
Interest Rate: The percentage charged for borrowing money
APR: Annual Percentage Rate includes both interest and fees
Term: The length of time to repay the loan in full
Amortization: The process of gradually paying off a loan through regular payments
Our calculator helps you understand the true cost of borrowing by showing your monthly payment, total interest costs, and how each payment affects your loan balance. Experiment with different loan amounts, interest rates, terms, and extra payments to find the right loan structure for your financial situation.