What Is an Amortization Schedule?
An amortization schedule is a detailed table that shows every loan payment over the full life of the loan. For each payment it shows how much goes toward interest, how much goes toward principal, and what the remaining balance is after that payment. This calculator builds that exact table for any fixed-rate loan.
How to Use the Amortization Calculator
- Enter the loan amount. This is the total principal you plan to borrow.
- Enter the annual interest rate. Use the yearly rate as a percentage, e.g. 7.5 for 7.5%.
- Enter the loan term in years. The tool converts it to months automatically.
- Click “Generate Schedule”. You get the monthly payment, totals, a balance chart and a full amortization table.
- Open the schedule (optional). Click “Show amortization schedule” to view every month in detail.
How the Amortization Formula Works
Where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments. Each month the interest is balance × r, and the rest of the fixed payment reduces the principal.
Why the Schedule Matters
The amortization table helps you see the true cost of borrowing and plan prepayments. In the early years most of your payment is interest; in the final years almost all of it is principal. Understanding this curve helps you decide between loan options and tenures with confidence.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a table that lists every loan payment over its full term, breaking each payment into the interest portion and the principal portion, and showing the remaining loan balance after each payment.
How do I use the amortization schedule calculator?
Enter your loan amount, annual interest rate, and loan term in years, then click Generate Schedule. The tool shows your monthly payment, total interest, total payment, a balance trend chart, and a full month-by-month amortization table.
Why is the interest portion highest at the start of the loan?
Early in the loan your outstanding balance is the largest, so the interest charged each month is highest. As the balance shrinks, the interest portion of each fixed payment falls and the principal portion grows.
Is the amortization calculator 100% free?
Yes. The amortization schedule calculator is completely free for unlimited use with no sign-up, no hidden fees and no premium limits.
Does the tool store my loan details?
No. All calculations run locally in your browser. Your loan amount, rate and term are never uploaded or stored on any server.