Amortization Calculator

Estimate loan payments, total interest, and a full amortization schedule.

Formula & Methodology

Each payment M = P × [r(1+r)^n] / [(1+r)^n − 1]; interest portion = balance × r, principal portion = M − interest.

Worked Example

A $200,000 loan at 7% for 30 years costs $1,331/month, with about $1,167 of the first payment going to interest.

Frequently Asked Questions

What is an amortization schedule?

A table showing how each payment splits between interest and principal over the life of the loan, and the remaining balance after each payment.

Why does equity build slowly at first?

Early payments are mostly interest because the balance is largest. The principal share grows over time as the balance shrinks.

Does this work for any loan type?

It models fixed-rate, fully amortizing loans. Adjustable-rate or interest-only loans follow different schedules.

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