Amortization Calculator

Visualize Your Loan Payoff with the Amortization Calculator

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and interest that goes into each payment until the loan is paid off in full. Our online Amortization Calculator lets you generate and compare both monthly and annual schedule views, so you can track how fast you are building equity and how your loan balance decreases over time.

Understanding Amortization Schedules

When you make a payment on an amortizing loan (like a mortgage or auto loan), the payment is split into two parts:

• Interest Payment: The fee charged by the lender for borrowing the money. In the early stages of a loan, the interest portion of your payment is at its highest because the remaining principal balance is large.
• Principal Payment: The money that directly reduces the outstanding loan balance. As the principal is paid down, the interest charged each month decreases, and a larger portion of your fixed payment goes toward principal.

Why Use an Amortization Calculator?

Generating an amortization table provides several key benefits:

1. Track Equity Growth: See exactly when you will owe less than half the property value or when your loan balance drops to zero.
2. Plan Extra Payments: Visualize how making additional payments toward your principal can shave months or years off your debt and save you interest.
3. Tax Planning: Mortgage interest is deductible in some regions. Use the annual amortization schedule to estimate your interest payments for tax filings.