Amortization Schedule Calculator

  • Enter the Loan Amount, Interest Rate (%), and Loan Term (months).
  • Click "Calculate" to generate the amortization schedule.
  • Click "Clear" to reset the results.
  • Click "Copy" to copy the amortization schedule to the clipboard.
Amortization Schedule
Payment #Payment AmountPrincipal PaymentInterest PaymentRemaining Balance
Payment Breakdown
Details and Formulas

The monthly payment is calculated using the formula:
Monthly Payment = P * [r(1 + r)^n] / [(1 + r)^n - 1]

  • P is the loan amount.
  • r is the monthly interest rate.
  • n is the total number of payments (loan term in months).

The amortization schedule provides a detailed breakdown of each payment, including principal and interest components. It helps visualize how your loan is paid off over time.

Calculation History

    What is Amortization Schedule?

    An amortization schedule is a table or spreadsheet that provides a detailed breakdown of how a loan or mortgage is paid off over time. It shows the periodic payments made by the borrower, the allocation of each payment towards both the principal (the initial loan amount) and the interest (the cost of borrowing), and the remaining balance of the loan after each payment.

    In an amortization schedule, the initial loan amount is divided into equal periodic payments over the life of the loan. In the early stages of the loan, a larger portion of each payment goes towards paying off the interest, while a smaller portion goes towards reducing the principal. As the loan matures, the balance shifts, and a larger portion of each payment is applied to the principal, gradually reducing the debt.

    All Formulae Related to Amortization Schedule

    1. Monthly Payment Calculation: The formula to calculate the monthly payment on a fixed-rate amortizing loan is given by: Monthly Payment (PMT) = [P * (r * (1 + r)^n)] / [(1 + r)^n - 1] Where:
      • P is the principal loan amount.
      • r is the monthly interest rate (annual interest rate divided by 12 months).
      • n is the total number of monthly payments.
    2. Interest Payment for a Specific Period: To calculate the interest payment for a specific period of the loan, you can use the following formula: Interest Payment = Remaining Balance * Monthly Interest Rate Where:
      • Remaining Balance is the outstanding loan balance at the beginning of the period.
      • Monthly Interest Rate is the monthly interest rate (annual interest rate divided by 12 months).
    3. Principal Payment for a Specific Period: To calculate the principal payment for a specific period, you can use the following formula: Principal Payment = Monthly Payment - Interest Payment
    4. Remaining Balance after a Payment: To calculate the remaining balance of the loan after a specific payment, you can use the following formula: Remaining Balance = Previous Remaining Balance - Principal Payment Where:
      • Previous Remaining Balance is the outstanding loan balance before the payment.


    Amortization schedule calculators have various applications in different fields. Here are some common applications:

    1. Mortgages and Real Estate: Amortization schedules are widely used in the real estate industry to calculate monthly mortgage payments for homebuyers. Buyers can use these calculators to understand the financial implications of different loan terms and interest rates.
    2. Personal Finance: Individuals can use amortization schedule calculators to plan and track the repayment of personal loans, such as auto loans or student loans. This helps borrowers budget and manage their finances effectively.
    3. Business Loans: Businesses use amortization schedules to calculate the monthly payments and total interest costs associated with business loans. This information is crucial for budgeting and financial planning.
    4. Investment Analysis: Investors use amortization schedules to assess the performance of mortgage-backed securities (MBS) or other debt instruments. They can estimate future cash flows and evaluate the risk associated with these investments.
    5. Loan Origination and Servicing: Financial institutions and lenders use amortization schedules to determine the terms of loans, create repayment schedules, and manage loan portfolios efficiently.

    Benefits of Using the Amortization Schedule Calculator

    Using an amortization schedule calculator offers several benefits for borrowers, investors, and financial professionals. Here are some of the key advantages:

    1. Clear Financial Planning: An amortization schedule calculator provides borrowers with a clear and detailed repayment plan, allowing them to budget effectively and plan for future payments.
    2. Transparency: Borrowers can see how each payment is allocated between principal and interest, which promotes transparency and helps them understand the true cost of borrowing.
    3. Comparison of Loan Options: Borrowers can compare different loan terms, interest rates, and down payment options to determine which loan is most affordable and suitable for their needs.
    4. Interest Savings: Borrowers can use the calculator to explore the impact of making extra payments or larger monthly installments, potentially saving on interest costs and reducing the loan term.
    5. Investment Analysis: Investors can assess the performance of investments backed by amortizing loans, such as mortgage-backed securities, and estimate future cash flows to make informed investment decisions.

    Last Updated : 27 February, 2024

    dot 1
    One request?

    I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️

    21 thoughts on “Amortization Schedule Calculator”

    1. The level of transparency and financial insight provided by this article is exemplary. It’s an excellent resource for anyone who wants to understand the true costs of borrowing.

    2. The article offers compelling reasons for using an amortization schedule calculator. It effectively demonstrates the financial advantages and transparency it provides to borrowers and investors.

    3. This is a very comprehensive and informative explanation of what an amortization schedule is and its importance. It’s an essential tool for financial planning and loan repayment.

    4. The level of detail and clarity in explaining amortization schedules is truly impressive. It provides a solid foundation for understanding the significance and relevance of these schedules in various financial contexts.

    5. Absolutely, Lola. The article’s emphasis on the clear financial planning and comparison of loan options is crucial for better decision-making when it comes to borrowing and investment.

    6. This article is a goldmine of information for those involved in financial services, lending, or investment analysis. The practical insights into interest savings and investment analysis are particularly noteworthy.

    7. I find this article to be extremely helpful and insightful. The detailed breakdown of the formulae related to amortization schedule is particularly valuable.

    8. I totally agree with you, Matthews. The article provides valuable insights into the benefits of using an amortization schedule calculator, both for borrowers and investors.

    9. This article is a must-read for anyone interested in real estate, personal finance, or investment analysis. It brilliantly illustrates the various applications of amortization schedules.

    10. The benefits of using an amortization schedule calculator are clearly outlined here, making it evident that such tools are indispensable for borrowers and investors alike.

    11. I couldn’t agree more, Hrogers. The article’s emphasis on interest savings and investment analysis is pivotal in evaluating the financial impact of loans and investments.

    12. I’m in awe of the depth of knowledge presented in this article. It effectively communicates the practical applications and benefits of amortization schedules in financial decision-making.

    13. The informative nature of this article is truly commendable. It provides detailed insights into the role of amortization schedules in loan origination and financial planning.

    14. This article provides a comprehensive guide to the practical applications and benefits of using an amortization schedule calculator. It’s an invaluable resource for financial professionals and borrowers alike.

    15. I’m impressed by the depth of knowledge presented in this article. It effectively communicates the relevance and significance of amortization schedules in various financial contexts.

    16. I couldn’t agree more, Louis. The transparency and clarity offered by an amortization schedule are essential for effective financial management.

    17. Absolutely, Mrose. The article’s comprehensive approach to explaining amortization schedules is indispensable for students, professionals, and financial enthusiasts alike.

    18. I completely agree, Zharrison. The article’s informative content is a valuable resource for anyone seeking a deeper understanding of loan repayment and investment analysis.

    19. I concur, Sasha. The formulae provided here are fundamental for anyone involved in financial planning or loan origination.

    20. Absolutely, Sasha. It’s great to have access to a clear explanation of the formulae used to calculate the monthly payments, interest payments, and principal payments in an amortization schedule.

    21. Absolutely, Cchapman. The practical implications highlighted here demonstrate the wide-ranging utility of amortization schedules.

    Leave a Comment

    Your email address will not be published. Required fields are marked *