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
About This Calculator
Amortization Schedule Calculator is designed to reduce manual errors and give repeatable outputs when you need quick, reliable answers.
Break down each payment into principal and interest over time to understand debt payoff progression and total borrowing cost.
If your workflow expands, pair this calculator with Loan Payment Calculator and Loan Amortization with Extra Payments Calculator to cross-check assumptions and build a stronger analysis chain.
Formula
Payment = P * [r(1 + r)^n] / [(1 + r)^n - 1]; schedule iterates interest_t = balance_t * r
Example Calculation
The worked example below demonstrates how the input fields translate into the final output. Use it as a quick validation pass before entering your own numbers.
- principal: 300000
- annualRatePercent: 5.8
- termYears: 30
Explanation of Results
Result Interpretation
Early payments are interest-heavy; principal share increases progressively as outstanding balance declines.
FAQ
Why do early payments mostly cover interest?
Interest is calculated on the larger beginning balance, so it dominates initial installments.
How do extra payments affect schedule?
Additional principal payments reduce balance faster, shorten term, and lower total interest paid.
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See Also
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