Finance calculator
Amortization Calculator
Calculate loan amortization schedule showing principal and interest breakdown.
About the amortization calculator
The amortization calculator shows the payment breakdown between principal and interest over the life of a loan.
How to use this calculator
- 1
Enter loan details
Enter the loan amount, interest rate, and term.
- 2
View results
See monthly payment, total interest, and total paid.
How the calculation works
Each payment splits into interest (remaining balance × monthly rate) and principal (payment − interest). Interest decreases over time as balance drops.
Example: 200,000 at 5% for 30 years: first payment ≈ 537 interest, 537 principal; final payment ≈ 5 interest, 1,069 principal.
How financial calculations work
Most finance calculators use standard formulas: amortization for loans, compound interest for savings, and present/future value for investments. Results are estimates — actual terms may vary based on lender fees, credit score, taxes, and market conditions. Always consult a financial advisor for major decisions.
Understanding key financial terms
APR (Annual Percentage Rate) includes fees and interest. APY (Annual Percentage Yield) reflects compound interest. DTI (Debt-to-Income) ratio measures monthly debt payments against gross income. Lenders typically prefer DTI below 36%. CAGR (Compound Annual Growth Rate) smooths investment returns over time.
Important limitations
This tool provides a mathematical estimate based only on the values entered. It does not account for regulations, taxes, lender fees, market conditions, or individual circumstances. Results are for planning purposes only — consult a qualified professional for regulated, medical, financial, or construction decisions.
Frequently asked questions about amortization calculator
How accurate is the amortization calculator?+
The calculation follows the displayed formula and retains full numeric precision before formatting the result.
Can I use the result professionally?+
Use it as a planning estimate. Confirm regulated, medical, financial, or construction decisions with a qualified professional.