Our Loan Amortization Calculator creates a detailed payment-by-payment schedule. See exactly how much of each payment goes to **principal vs. interest** and track your **remaining loan balance** over time.
Calculate the monthly payment and schedule.
$0
| Payment # | Principal Paid | Interest Paid | Remaining Balance |
|---|
Enter your loan details above to generate the full payment schedule. Schedule shows up to 360 payments.
A **Loan Amortization Calculator** is a powerful tool that demystifies your loan. It does two key things: first, it calculates your fixed monthly payment. Second, it generates a complete **amortization schedule**, which is a detailed, payment-by-payment table showing exactly how your money is split between **principal** (the money you actually borrowed) and **interest** (the cost of borrowing). This schedule lets you see your **remaining loan balance** after any payment, making it a perfect **loan payoff calculator**.
The calculator first finds your monthly payment (EMI) and then applies it month by month to the loan balance. The formulas are:
EMI = P × [ r(1 + r)n ] / [ (1 + r)n - 1 ]
For each payment, the math is simple:
This process is repeated until the remaining balance reaches $0.
Let's use the default values to see how the first payment is calculated:
Calculation Steps:
1. Calculate Monthly Payment (EMI):
EMI = $200,000 × [ 0.005(1 + 0.005)360 ] / [ (1 + 0.005)360 - 1 ] = $1,199.10
2. Calculate Payment #1 Breakdown:
Interest Paid = $200,000 (Balance) × 0.005 (Rate) = $1,000.00
Principal Paid = $1,199.10 (EMI) - $1,000.00 (Interest) = $199.10
3. Calculate New Remaining Balance:
New Balance = $200,000 - $199.10 = $199,800.90
For Payment #2, the interest is calculated on the new, lower balance of $199,800.90. This is why the interest portion slowly drops and the principal portion rises with every payment you make.
An **amortization schedule calculator** is essential for any borrower. You can use it to:
The **Principal** is the actual amount of money you borrowed. The **Interest** is the fee the bank charges you for borrowing that money. Your payment is a combination of both.
No. This is a simple **principal and interest (P&I)** calculator. Your total mortgage payment (often called PITI) will also include property taxes, homeowner's insurance, and possibly PMI. For a PITI calculator, please use our full Mortgage Calculator.
The best way is to make extra payments designated "to principal only." This reduces your **remaining loan balance** directly, which means less of your next payment goes to interest. You can also refinance to a shorter term (like 15 years) or a lower interest rate.
Understanding your loan's amortization is the key to getting out of debt. To see how much you can afford, try our Loan Affordability Calculator or compare payments with the basic Loan EMI Calculator.