Generate a complete month-by-month loan repayment schedule showing principal paid, interest paid, and remaining balance for every payment.
This tool generates a detailed payment schedule for a loan, showing how each payment splits between principal and interest over the full loan term. It helps borrowers understand exactly how their loan balance decreases over time and how much total interest accumulates.
Monthly Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. Each month, interest = remaining balance × monthly rate, and principal paid = total payment − interest for that month, with the new balance carried forward to the next period.
Enter your loan amount, interest rate, and term, and the calculator generates a full amortization schedule showing the principal/interest breakdown for every payment period.
Example: On a 30-year mortgage, early payments are mostly interest (since the balance is highest), while payments in the final years are mostly principal, even though the total monthly payment stays the same throughout.
Why do early loan payments go mostly toward interest? Interest is calculated on the remaining balance, which is highest at the start of the loan, so a larger dollar amount of each early payment covers interest, with the remainder (a smaller amount early on) reducing principal.
How does an amortization schedule help with financial planning? It shows exactly how much equity you'll have built by any point in the loan, how much total interest you'll pay, and how extra payments toward principal would affect the remaining schedule.
What happens to the amortization schedule if I make an extra payment? Extra principal payments reduce the balance immediately, which reduces future interest charges and effectively shortens the remaining schedule, since less principal remains to amortize over the original term.
Is amortization the same for all loan types? The basic amortization concept applies to most fixed-rate installment loans (mortgages, auto loans, personal loans), though some loan structures (like interest-only loans) don't follow standard amortization during an initial period.
Why is understanding amortization useful before taking a loan? It reveals the true cost of borrowing over time and can highlight how much is spent on interest versus principal, helping borrowers make more informed comparisons between different loan offers and terms.