What does an amortization schedule show?

An amortization schedule lists every payment over the life of the loan, showing how much goes to interest versus principal each month, and the remaining balance after each payment.

How much does an extra monthly payment save?

Extra payments reduce the principal faster, which reduces the interest charged each subsequent month. Even $50–100 extra per month can save thousands in interest on a long-term loan and cut years off the term.

Does this work for mortgages?

Yes. Enter your mortgage amount, annual interest rate, and term in years. The calculator works for any standard amortizing loan: mortgage, auto, personal, student, or business.

Free · Instant · Amortization included

Loan Calculator

Calculate your monthly payment, total interest, and full amortization schedule for any loan. See exactly how extra payments reduce your interest and payoff date.

Loan Details

Loan Amount

Annual Interest Rate

Loan Term

yr mo

Extra Monthly Payment (optional)

Start Date (optional)

Affordability Check (optional)

Monthly Payment

Total Interest

Total Payment

Payoff Date

–

Balance over time

Balance Interest paid (cumulative)

Amortization Schedule

How the loan payment formula works

The monthly payment on an amortizing loan is calculated with the formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of months. This ensures each payment covers that month's interest plus reduces the principal.

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Mortgages

Enter your home price minus down payment as the loan amount. A 30-year mortgage at 7% on a $350,000 loan has a $2,329 monthly payment and $488,281 in total interest.

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Car loans

Auto loans typically run 3–7 years. See how a shorter term reduces total interest, even though the monthly payment is higher.

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Extra payments

Even $100/month extra on a 30-year mortgage can save tens of thousands in interest and cut years off the loan. The extra payment section shows the exact savings.

For a broader financial picture, pair this with the compound interest calculator or the budget planner.

Frequently Asked Questions

How is the monthly payment calculated?

M = P × [r(1+r)^n] ÷ [(1+r)^n − 1] — where P is principal, r is monthly rate (annual ÷ 12), n is total months. This is the standard amortizing loan formula used by banks worldwide.

What's the difference between EMI and monthly payment?

EMI (Equated Monthly Installment) is the same concept — a fixed amount paid each month that covers both principal and interest. The formula is identical.

Does the amortization schedule include extra payments?

Yes. When you enter an extra payment amount, the schedule recalculates with the higher monthly payment and shows the accelerated payoff date.

Why does the early amortization mostly pay interest?

Early in the loan, the balance is high — so the interest charge (balance × monthly rate) is large. As the principal decreases, more of each payment goes to principal. This is the normal structure of any amortizing loan.