Amortization Calculator
Generate an amortization schedule showing principal, interest and balance. Enter your loan details to see the monthly payment and a complete payment-by-payment breakdown.
Enter the original amount borrowed.
Enter the annual interest rate.
Enter the scheduled repayment period.
Optional additional payment equivalents made at the end of each year.
Optional annual lump-sum payment toward the outstanding balance.
Amortization Schedule
Each row shows the payment, principal, interest and remaining balance.
Amortization Formula
P = Original loan amount
r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
n = Total number of monthly payments
Monthly Interest = Opening Balance × Monthly Rate
Monthly Principal = Monthly Payment − Monthly Interest
Closing Balance = Opening Balance − Monthly Principal
An amortization schedule allocates each regular payment between interest and principal. As the balance declines, the interest portion generally decreases and the principal portion increases.
How to Use the Amortization Calculator
Enter the Loan Amount
Enter the original principal borrowed.
Enter the Interest Rate
Enter the annual interest rate for the loan.
Enter the Loan Term
Enter the number of years used for scheduled repayment.
Generate the Schedule
The calculator generates every payment with its principal, interest and remaining balance.
Example Amortization Calculation
1,000,000 loan at 9% for 5 years
- Loan Amount = 1,000,000
- Annual Interest Rate = 9%
- Loan Term = 5 years
- Total Payments = 60
Estimated Monthly Payment ≈ 20,758.14
The schedule then separates each payment into principal and interest and tracks the remaining balance.
Understanding an Amortization Schedule
Payment
The regular amount paid during each scheduled period.
Interest
The portion of each payment charged for borrowing the money.
Principal
The portion of each payment that reduces the outstanding loan balance.
Balance
The remaining principal after the payment has been applied.