🏦 Amortization Calculator
Enter your loan amount, interest rate, and term to see your estimated monthly payment and total interest paid over the life of the loan.
What Is Loan Amortization?
Amortization is the process of paying off a loan through regular, fixed payments over time, where each payment covers both interest and a portion of the principal. Early payments are weighted more toward interest, while later payments pay down more principal, even though the total payment stays the same each period.
The Formula
This calculator uses the standard fixed-rate amortization formula: M = P × [i(1+i)^n] / [(1+i)^n − 1], where P is the loan principal, i is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments.
How to Use the Result
The monthly payment figure shows what you’d pay each month for the life of the loan, while total interest shows the full cost of borrowing beyond the principal. This is a general planning estimate — actual loan terms may include fees, insurance, taxes, or variable rates not reflected here.
- For general financial planning and educational purposes only, not a loan offer.
- Check with your lender for exact terms and an official amortization schedule.