Amortization calculator
Enter a loan amount, a yearly rate and a term to see the monthly payment and the schedule of the whole loan. Each year and each month shows the interest, the part that lowers the balance and what is left.
This answer is for the example loan in the boxes above. Change the boxes to see your own.
Each month's interest is rounded to the cent and the last payment is whatever is left. The loan calculator does not round, so its totals differ slightly.
Year by year
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $14,916.50 | $3,070.06 | $246,929.94 |
| 2 | $14,727.14 | $3,259.42 | $243,670.52 |
| 3 | $14,526.09 | $3,460.47 | $240,210.05 |
| 4 | $14,312.66 | $3,673.90 | $236,536.15 |
| 5 | $14,086.07 | $3,900.49 | $232,635.66 |
| 6 | $13,845.49 | $4,141.07 | $228,494.59 |
| 7 | $13,590.07 | $4,396.49 | $224,098.10 |
| 8 | $13,318.94 | $4,667.62 | $219,430.48 |
| 9 | $13,031.04 | $4,955.52 | $214,474.96 |
| 10 | $12,725.37 | $5,261.19 | $209,213.77 |
| 11 | $12,400.86 | $5,585.70 | $203,628.07 |
| 12 | $12,056.37 | $5,930.19 | $197,697.88 |
| 13 | $11,690.62 | $6,295.94 | $191,401.94 |
| 14 | $11,302.29 | $6,684.27 | $184,717.67 |
| 15 | $10,890.02 | $7,096.54 | $177,621.13 |
| 16 | $10,452.31 | $7,534.25 | $170,086.88 |
| 17 | $9,987.61 | $7,998.95 | $162,087.93 |
| 18 | $9,494.27 | $8,492.29 | $153,595.64 |
| 19 | $8,970.48 | $9,016.08 | $144,579.56 |
| 20 | $8,414.39 | $9,572.17 | $135,007.39 |
| 21 | $7,824.01 | $10,162.55 | $124,844.84 |
| 22 | $7,197.19 | $10,789.37 | $114,055.47 |
| 23 | $6,531.73 | $11,454.83 | $102,600.64 |
| 24 | $5,825.21 | $12,161.35 | $90,439.29 |
| 25 | $5,075.14 | $12,911.42 | $77,527.87 |
| 26 | $4,278.78 | $13,707.78 | $63,820.09 |
| 27 | $3,433.33 | $14,553.23 | $49,266.86 |
| 28 | $2,535.71 | $15,450.85 | $33,816.01 |
| 29 | $1,582.71 | $16,403.85 | $17,412.16 |
| 30 | $570.97 | $17,412.16 | $0.00 |
Month by month (360 payments)
How it works
The payment is the amount that brings the balance to zero after the last month. The calculator finds it with the standard loan formula and rounds it to the cent once. Each month the interest is the balance times a twelfth of the yearly rate, rounded to the cent. The payment covers that interest first, and what is left lowers the balance. The last payment is whatever is left.
Two tables show the schedule. The first has a row for each year, with its interest, the part that lowered the balance and the balance at the end. The second, in a list that you open, has a row for each month.
A worked example
A loan of $250,000 at 6 percent for 30 years has a payment of $1,498.88. In the first month the interest is $1,250.00 and $248.88 lowers the balance, which leaves $249,751.12. In the last month the interest is $7.44 and $1,488.01 lowers the balance. The last payment is $1,495.45, a little less than the others.
The first year pays $14,916.50 of interest and lowers the balance by $3,070.06, to $246,929.94. The thirtieth year pays $570.97 of interest and lowers the balance by $17,412.16. In all you pay $539,593.37, and $289,593.37 of that is interest.
An extra payment
Enter an amount in the last box and it is added to the payment every month. With $200 extra the payment is $1,698.88, the loan ends after 267 months, which is 22 years and 3 months, and the interest falls by $86,231.98. The tables then show the shorter schedule.
Rounding to the cent
Money is counted in cents, so each month’s interest is rounded to the cent. The payment is rounded once, and when it is rounded down the last payment is larger. At 5 percent, $250,000 has a payment of $1,342.05 and a last payment of $1,345.33.
The loan calculator does not round. For the loan above it gives $289,595.47 of interest, which is $2.10 more than the schedule.
What it leaves out
Fees, insurance and taxes are not in the payment, and a lender’s own schedule can differ from this one. A rate that changes during the loan is not modeled. The loan may run up to 100 years.
Questions
What is an amortization schedule?
A table of every payment of a loan. Each row says how much of the payment is interest, how much lowers the balance and what is still owed. The balance reaches $0.00 with the last payment.
How is each month’s interest worked out?
The balance times one twelfth of the yearly rate, rounded to the cent. On $250,000 at 6% the first month’s interest is $1,250.00, so $248.88 of the $1,498.88 payment lowers the balance.
Why is the last payment different?
The payment is rounded to the cent, so the balance after the last full payment is a few cents off, and the last payment is whatever is left. On $250,000 at 6% for 30 years it is $1,495.45. At 5% it is $1,345.33, because the payment of $1,342.05 was rounded down.
How does an extra payment change the schedule?
It goes straight to the balance each month, so later interest is smaller and the loan ends sooner. $200 extra on $250,000 at 6% ends it after 267 months, which is 22 years and 3 months, and saves $86,231.98 of interest.
Why are the totals not the same as in the loan calculator?
This schedule rounds each month’s interest to the cent, and the loan calculator does not. For the $250,000 loan the interest is $289,593.37 here and $289,595.47 there.
Does it match my lender’s schedule?
It can differ. Fees, escrow for taxes and insurance, and any rounding rule of the lender are not in it. Your lender’s schedule is the one that says what you owe.
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