Estimate each loan payment, see the lifetime cost of interest, and follow your remaining balance from the first payment to payoff. Adjust the loan term, payment frequency, or extra payments to compare scenarios in seconds.
Early payments usually contain more interest. As the balance falls, more of each payment reduces principal.
| Payment | Date | Payment | Principal | Interest | Extra | Balance |
|---|---|---|---|---|---|---|
| Enter loan details and calculate to generate your schedule. | ||||||
Loan amortization is the gradual repayment of borrowed money through scheduled payments. With a typical fixed-rate amortizing loan, every payment contains two parts: interest charged on the outstanding balance and principal that reduces what you owe.
An amortization schedule lists that split for each payment. Interest is usually highest near the beginning because the balance is largest. Over time, the balance declines, the interest charge becomes smaller, and more of the same scheduled payment goes toward principal.
A longer term can make each payment smaller, but it usually keeps the balance outstanding for longer and may increase total interest. Comparing schedules helps borrowers see that tradeoff before choosing a term or adding extra principal payments.
Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]P is principal, r is the periodic interest rate, and n is the number of payments.
Straightforward answers about payment calculations, loan schedules, and the limits of an estimate.
It is a tool that estimates the scheduled payment for a fixed-rate loan and shows how each payment is divided between principal and interest. It also estimates the remaining balance after every payment.
It combines the loan principal, periodic interest rate, and number of payments in a standard fixed-payment formula. It then applies each payment to accrued interest first and reduces the balance with the remaining principal amount.
For a fixed-rate loan, the payment is calculated so the balance reaches zero after the selected number of payments. The result assumes the interest rate stays unchanged and payments are made on schedule.
The result panel estimates lifetime interest by adding the interest charged in every scheduled period. The amount changes when you adjust the rate, term, payment frequency, or extra principal.
Principal is the amount borrowed and still owed. Interest is the cost charged by the lender for providing the funds. Each standard amortized payment normally includes both.
Usually, yes. Spreading repayment across more periods generally lowers each scheduled payment, assuming the principal and interest rate remain the same.
It often does because interest accrues over more time and the balance falls more slowly. Compare both the regular payment and total interest before choosing a term.
You can use it for many fixed-rate, fully amortizing loans such as conventional mortgages, auto loans, and personal loans. It is not designed for variable-rate, interest-only, revolving-credit, or balloon-payment products.
No. The calculation covers principal and interest plus any extra principal you enter. Property taxes, insurance, origination fees, closing costs, late charges, and prepayment penalties are outside this estimate.
The math is accurate for the entered assumptions, but real lender schedules can differ because of rounding rules, accrual methods, payment dates, fees, or product terms. Confirm final figures with the lender.
Financial disclaimer: Results are estimates for educational and planning purposes. Actual lender terms may differ. Taxes, insurance, fees, penalties, and other costs are not included unless expressly shown. Verify all terms and figures with your lender before making a financial decision.
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