Amortization Calculator

Full amortization schedule with annual breakdowns and principal vs interest pie chart

$0
Monthly Payment

Full Amortization Schedule

Click a year to expand/collapse monthly details

YearPaymentPrincipalInterestBalance

About the Amortization Calculator

This amortization calculator generates a complete loan repayment schedule showing each payment's split between principal and interest. The interactive yearly breakdowns and pie chart help you visualize how your loan balance decreases over time. The interactive yearly breakdowns let you expand each year to see monthly details, and the pie chart provides a visual summary of total principal versus interest. This is an essential tool for anyone who wants to truly understand how their loan works over its full term.

How to Use This Calculator

  1. Enter your loan amount, annual interest rate, and loan term in years.
  2. Click Calculate to generate the full amortization schedule.
  3. Click any year to expand monthly payment details and view the principal vs interest pie chart.

The Formula

The calculator applies the standard amortization formula, then iteratively computes the principal and interest portions for each payment period.

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Frequently Asked Questions

What is loan amortization?

Amortization is the process of spreading out a loan into fixed payments over time. Each payment covers interest charges with the remainder reducing the principal balance.

Why is more interest paid in early years?

In the early years of a loan, the principal balance is highest, so interest charges are larger. As the principal decreases, a greater portion of each payment goes toward principal.

What is the difference between amortization and simple interest?

Amortization spreads payments evenly over the loan term, with each payment covering interest first and principal second. Simple interest loans calculate interest on the daily balance, which can result in different total costs.

How can I use the amortization schedule to save money?

By reviewing your amortization schedule, you can identify when the interest portion drops significantly and plan extra payments to maximize principal reduction when it is most effective.

Why does the balance decrease slowly in early years?

In early years, a larger portion of each payment goes toward interest because the principal balance is highest. As the principal decreases over time, more of each payment goes toward principal.

What happens if I sell my home before the loan matures?

If you sell before the loan is paid off, the remaining balance must be paid from the sale proceeds. Your amortization schedule shows exactly how much principal remains at any point.

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