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Loan Amortization Calculator
Use this loan amortization calculator for car loans, personal loans or any fixed-rate installment loan. It shows your monthly payment, the total interest you will pay, and a year-by-year schedule of how your balance, interest and principal change until the loan is paid off.
Results
Monthly payment
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Total interest
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Total cost of the loan
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Year-by-year schedule
How it works
An amortizing loan is repaid in equal installments. Each month, interest is charged on the current balance at the monthly rate (annual rate divided by 12), and whatever is left of the payment reduces the principal. The payment itself is set by the formula M = P x r(1+r)^n / ((1+r)^n - 1), which guarantees the balance reaches exactly zero at the final payment. Because the balance starts at its highest, the first payments are interest-heavy. Over time the interest portion shrinks and the principal portion grows, even though the payment never changes. The year-by-year table below the results groups the monthly schedule into annual totals so you can see how much interest each year costs and how fast the balance falls. This is also why extra principal payments early in a loan save the most interest: they cut the balance that all future interest is calculated on. The schedule assumes a fixed rate and on-time payments with no fees, prepayment or missed months, so treat it as an accurate model of a standard loan rather than a statement from your lender.
Frequently asked questions
What does amortization mean?
Amortization is the process of paying off a loan in regular installments, where each payment covers both interest and part of the principal until the balance reaches zero.
Why does the interest portion change every month?
Interest is charged on the remaining balance, which falls every month. A smaller balance means less interest, so more of the fixed payment goes to principal over time.
Can I shorten the schedule with extra payments?
Yes. Any extra amount goes straight to principal, lowering the balance and every future interest charge. Even one extra payment per year can cut months off a long loan.
Is this the same as a mortgage amortization schedule?
The math is identical. Mortgages simply run for longer terms and usually add escrow for taxes and insurance, which this general loan schedule does not include.