Mathematics & Statistics / Financial Mathematics

Amortization Schedule Calculator

Amortization Formula

Monthly Payment: M = P[r(1+r)^n] / [(1+r)^n - 1]

Where:

• P = Principal loan amount

• r = Monthly interest rate (Annual rate / 12)

• n = Total number of payments (Years × 12)

Each Payment: Interest = Balance × r, Principal = Payment - Interest