WorldCalcs

Amortization Calculator

See your monthly payment, total interest and full payment schedule — with optional extra monthly payments.

Reviewed by the WorldCalcs team · Methodology · Last reviewed: July 2026

Monthly payment

1 498.88

Total interest

289 595.47

Total cost

539 595.47

This is a general estimate, not financial advice. Your actual rate and terms depend on the lender. See our Disclaimer.

What is an amortization calculator?

An amortization calculator shows how a fixed-rate loan is paid off over time. Each payment stays the same, but the split between interest and principal changes: early payments are mostly interest, and later payments are mostly principal. This calculator gives you the monthly payment, the total interest, and a full amortization schedule so you can see exactly where every payment goes — and how an extra monthly payment shortens the loan. It works for mortgages, car loans, personal loans, and student loans in any currency.

How amortization is calculated

The fixed monthly payment comes from the standard amortization formula: M = P · i · (1 + i)^n ÷ ((1 + i)^n − 1), where P is the loan amount, i is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments (years × 12). Each month, interest is charged on the remaining balance (balance × i), and whatever is left of the payment reduces the principal. Because the balance shrinks every month, the interest portion falls and the principal portion grows, until the balance reaches zero. If the rate is 0%, the payment is simply the loan amount divided by the number of months.

Example

Take a 250 000 loan at 6% annual interest over 30 years. The monthly payment is 1 498.88. In the first month, interest is 250 000 × 0.5% = 1 250.00, so only 248.88 reduces the balance. By month 12 the principal portion has grown to 262.91. Over 30 years you pay 289 595.47 in interest, so the loan costs 539 595.47 in total. Add 200 per month and the loan is gone in 22 years 3 months, saving 86 232.96 in interest.

Related: see our Loan Calculator, Mortgage Calculator and Compound Interest Calculator.

All calculations happen in your browser. Nothing is sent, stored, or tracked.

Results are estimates and may contain errors — for general information only, not professional advice. Always verify before relying on them. Disclaimer

How to use

Enter the loan amount, annual interest rate and term in years. Optionally add an extra monthly payment to see how much time and interest it saves.

Results update instantly. Open the schedule to see the first year month by month, then one row per year for the rest of the loan.

Frequently asked questions

What does amortization mean?+

Amortization is the process of paying off a loan with regular, equal payments over a set period. Part of each payment covers interest and part reduces the balance, until the loan is fully paid.

Why is most of my early payment interest?+

Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, less of each payment goes to interest and more goes to principal.

How can I pay off my loan faster?+

Paying extra each month reduces the balance sooner, which lowers future interest. This calculator shows the new payoff date and the total interest you would save.

What is an amortization schedule?+

It is a table listing every payment, showing how much goes to principal, how much to interest, and the remaining balance after each payment.

Does an extra payment go to principal or interest?+

An extra payment reduces the principal directly, so it cuts the balance that future interest is charged on. That is why extra payments save interest.

Is this the same as a loan calculator?+

They are closely related. A basic loan calculator focuses on the monthly payment, while an amortization calculator focuses on the full payment schedule and the effect of extra payments.

Does the schedule include taxes or insurance?+

No. This tool covers principal and interest only. For a mortgage estimate that adds property tax and insurance, use a mortgage calculator.

What if my interest rate is 0%?+

With a 0% rate, no interest is charged, so each payment is just the loan amount divided by the number of months.

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