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Loan Details

Monthly Payment-
Total Interest-
Payoff Date-
#PaymentPrincipalInterestBalance
Enter details and click Calculate
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About

A loan amortization schedule is a crucial tool for anyone with a mortgage, car loan, or personal debt. It breaks down every payment over the life of the loan, distinguishing between the portion that pays off interest and the portion that reduces the principal balance. In the early years of a long-term loan, payments are primarily interest-heavy, meaning the actual debt decreases slowly.

This calculator not only generates the standard schedule but allows you to simulate the impact of extra payments. By adding even a small amount to your monthly payment, you can drastically reduce the total interest paid and shorten the loan term by years. Understanding this math is the first step toward financial freedom.

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Formulas

The monthly payment (M) is calculated using the standard annuity formula:

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)

Reference Data

MonthPaymentPrincipalInterestBalance
1$1,073.64$240.31$833.33$199,759.69
2$1,073.64$241.31$832.33$199,518.38
3$1,073.64$242.32$831.32$199,276.06
...............

Frequently Asked Questions

It is a table that lists each periodic payment on a loan. It shows the specific amount of interest and principal comprising each payment and the remaining balance after every payment.
Extra payments go directly toward the principal balance (assuming no penalties). This reduces the balance on which future interest is calculated, creating a snowball effect that shortens the loan term and saves money.
Interest is calculated on the remaining balance. At the start, the balance is highest, so the interest charge is highest. As you pay down the principal, the interest portion of your fixed payment decreases.
Yes. If the interest rate is 0%, the calculator simply divides the principal by the number of months.