Amortization Calculator

Generate detailed loan amortization schedules showing principal and interest payments over time.

Loan Amount ($):

Annual Interest Rate (%):

Loan Term:

Term Unit:

Payment Frequency:

Loan Start Date:

Extra Payment ($): Additional amount applied to principal each payment

Amortization Information

An amortization schedule shows how each loan payment is split between principal and interest over the life of the loan.

Key Concepts:

Principal: The portion of payment that reduces the loan balance
Interest: The cost of borrowing money, calculated on remaining balance
Amortization: The process of paying off debt through regular payments
Front-loaded Interest: Early payments have more interest, later payments have more principal

Payment Frequency Benefits:

Monthly: Standard payment schedule, 12 payments per year
Bi-weekly: 26 payments per year, reduces total interest significantly
Weekly: 52 payments per year, fastest payoff method
Quarterly: 4 payments per year, larger payment amounts

Extra Payment Strategies:

Apply extra payments directly to principal
Make one extra payment per year
Round up payments to the nearest $50 or $100
Use windfalls (bonuses, tax refunds) for extra payments
Consider bi-weekly payments instead of monthly

Understanding Your Schedule:

Early payments are mostly interest
Later payments are mostly principal
Extra principal payments have the biggest impact early in the loan
The schedule shows exactly when you'll be debt-free