Amortization schedule
| Year | Payment | Principal | Interest | Balance |
|---|
Plan a mortgage, car loan or personal loan with confidence. See your monthly payment, how much goes to interest over the life of the loan, and how extra payments can save you years.
How to use the Mortgage & Loan Amortization Calculator
- 1 Enter the loan amount, the annual interest rate and the term.
- 2 Optionally set the first payment month and an extra monthly payment.
- 3 Review the payment, totals and the yearly or monthly schedule; export it as CSV.
Formula
M = P × r ÷ (1 − (1 + r)^−n) M = monthly payment, P = loan amount, r = annual rate ÷ 12, n = number of monthly payments
Worked examples
Input: $300,000 at 6.5% for 30 years
Result: $1,896.20 / month
Total interest ≈ $382,633
Input: Same loan + $200/month extra
Result: Paid off ~7 years sooner
Saves ≈ $103,000 in interest
What is amortization?
An amortizing loan is repaid with equal monthly payments. Early payments are mostly interest because the balance is high; over time the interest portion shrinks and more of each payment reduces the principal. The schedule above shows this split for every month or year.
Loan EMI: the same monthly payment
EMI stands for equated monthly instalment, the term banks in India, Pakistan and many other countries use for the fixed monthly payment of a loan. It is exactly the monthly payment this calculator shows, so it works as an EMI calculator for home loans, car loans and personal loans: enter the loan amount, the yearly interest rate and the term to see your EMI, the total interest and the full repayment schedule.
The power of extra payments
Any amount paid above the required payment goes straight to principal, so it stops interest from accruing on that money for the rest of the loan. Even small regular overpayments can cut years off a mortgage — check with your lender whether early repayment fees apply.
What this calculator does not include
Property tax, homeowner's insurance, PMI and HOA fees are often bundled into a mortgage payment but are not interest or principal. Add them separately to estimate your full monthly housing cost.
Frequently asked questions
How is a monthly mortgage payment calculated?
With the annuity formula M = P·r / (1 − (1 + r)^−n), where r is the monthly rate and n the number of payments.
Why do I pay so much interest at the start?
Interest is charged on the outstanding balance, which is highest at the beginning of the loan.
Does a shorter term save money?
Yes. A 15-year term has higher monthly payments but usually far lower total interest than a 30-year term.
How is a loan EMI calculated?
EMI = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r the monthly interest rate (yearly rate ÷ 12) and n the number of months. This calculator does it for you and shows the full schedule.
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