AM

Amortization Calculator

How each payment on a loan splits between interest and principal, and how the balance falls year by year.

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Result…

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years
$/ mo

 

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How it's calculated

Payment = P × i ÷ (1 − (1 + i)^−n)
Each month: interest = balance × i; principal = payment − interest; balance −= principal

An amortization schedule shows how a fixed payment pays interest first and principal second; the share going to principal grows every month. Extra payments come straight off the principal, which shortens the loan and cuts the total interest.

Your numbers, step by step

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