Free Loan Amortization Calculator
Calculate your loan amortization schedule showing monthly payments, principal and interest breakdown, and remaining balance over time.
USD
%
years
Monthly Payment
$1,199.10
Total Amount Paid$431,676.38
Total Interest Paid$231,676.38
First Month Interest$1,000.00
First Month Principal$199.10
Monthly Payment vs Loan Term
How Loan Amortization Works
Amortization is the process of spreading loan payments over time. Each payment covers interest on the remaining balance plus a portion of the principal.
Formula
Monthly Payment: M = P * [r(1+r)^n] / [(1+r)^n - 1]
For each payment:
Early payments are mostly interest; later payments are mostly principal.
Example Calculation
A $200,000 loan at 6% interest for 30 years.
- 01Monthly rate: 6% / 12 = 0.5% (0.005)
- 02Total payments: 30 * 12 = 360
- 03Monthly payment = $200,000 * [0.005 * (1.005)^360] / [(1.005)^360 - 1] = $1,199.10
- 04First month interest: $200,000 * 0.005 = $1,000.00
- 05First month principal: $1,199.10 - $1,000.00 = $199.10
- 06Total paid: $1,199.10 * 360 = $431,676.00
- 07Total interest: $431,676.00 - $200,000 = $231,676.00
Frequently Asked Questions
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How to Calculate Mortgage Payments
Learn how to calculate mortgage payments step by step. Understand the mortgage payment formula, principal vs. interest breakdown, escrow, PMI, and how to use amortization schedules.