Amortization Calculator

Amortization is paying off a loan with equal, regular payments so the amount you owe shrinks with each payment. Every payment covers the interest due that period plus a slice of principal, until the balance reaches zero at the end of the term.

Using the level-payment formula A = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r is the periodic interest rate (annual rate ÷ payments per year ÷ 100), and n is the total number of payments (years × payments per year).

An amortization schedule (or amortization table) is a period-by-period breakdown showing how each payment splits between interest and principal and how the outstanding balance falls to zero. This calculator generates the full table.

Interest is charged on the outstanding balance, which is highest at the start. So early payments are mostly interest and only a little principal; as the balance falls, the principal share of each payment grows even though the payment stays the same.

Paying more often (for example biweekly instead of monthly) splits the same annual rate into smaller periodic rates and can reduce total interest slightly, because the balance is paid down a little sooner each period. This calculator lets you compare monthly, biweekly, weekly, quarterly and annual schedules.

A higher annual rate raises both each payment and the total interest paid over the life of the loan. On a long term like a 30-year mortgage, even a fraction of a percent can add up to thousands in extra interest.

Yes. Spreading the loan over more years lowers each payment, but you pay interest for longer, so the total interest is higher. A shorter term means a larger payment but less interest overall.

With no interest the payment is simply the loan amount divided by the number of payments (straight-line principal), and the total interest is zero — every payment is 100% principal.

Each payment is rounded to the nearest cent, so tiny rounding differences accumulate. The final payment is adjusted up or down by a few cents so the closing balance lands exactly at zero, which is how real lenders close out a loan.

No. This calculator shows only principal and interest (P&I). Mortgages and other loans may add property tax, insurance, escrow, points or processing fees, which are not part of the amortizing payment shown here.

The math is identical — both use the reducing-balance level-payment formula. This Amortization Calculator is the generic, US-style version: you enter the term in years, pick any payment frequency, and it uses generic currency. Our EMI calculator is tailored to Indian loans with a months-based monthly tenure.

Yes. The formula is the same for any fully-amortising fixed-rate loan; only the typical amount, rate and term differ. Enter your figures and the schedule applies whether it is a home, car or personal loan.

The crossover — sometimes called the tipping point — happens when the interest portion of a payment drops below half the payment amount. Because interest equals the outstanding balance multiplied by the periodic rate, the flip occurs when the balance falls below A ÷ (2 × r), where A is the fixed payment and r is the periodic rate. On a 30-year mortgage at 6% this happens only around the 20-year mark, meaning you spend the first two-thirds of the term paying mostly interest. Choosing a shorter term or making extra principal payments moves that crossover point earlier.

Yes. Any extra amount applied directly to principal reduces your outstanding balance, and because interest is charged on that balance each period, every dollar of extra principal cuts every future interest charge by a small amount. Over a long term these savings compound: a modest regular extra payment on a 30-year mortgage can cut years off the term and save tens of thousands in interest. This calculator models a standard schedule; use the full schedule table to see how your balance falls, then recalculate with a shorter term to approximate the effect of consistent overpayments.