What an amortization schedule shows you
Every loan payment is split two ways: part pays down what you borrowed (principal), and part is the cost of borrowing (interest). The schedule above shows that split for every single payment. Notice how, early on, most of your money goes to interest β and only later does it shift to principal.
This is the number most "instant answer" tools hide. Seeing it is what lets you make real decisions: whether to make extra payments, refinance, or choose a shorter term.
How the monthly payment is calculated
We use the standard amortization formula lenders use:
M = P Γ [ r(1+r)βΏ ] / [ (1+r)βΏ β 1 ]
where P is the loan amount, r the monthly rate (APR Γ· 12), and n the number of payments. The last payment is adjusted so the balance lands exactly on zero.
The power of extra payments
Because interest is charged on the remaining balance, any extra amount you pay goes straight to principal and saves interest for the rest of the loan. Enter an extra monthly amount above and the schedule, payoff time, and interest saved all update instantly.
Works for any installment loan
Auto loans, personal loans, student loans, equipment financing β any loan with a fixed rate and equal monthly payments works here. (For a home mortgage, our Mortgage Calculator also factors in down payment, taxes and insurance.)
Frequently asked questions
Is APR the same as the interest rate?
Not always. The interest rate sets your monthly payment, while APR also folds in certain lender fees to show the true yearly cost. When comparing loan offers, compare APRs; when estimating a payment here, enter the interest rate you were quoted.
Does a longer term save me money?
A longer term lowers the monthly payment but raises the total interest you pay, because you owe the balance for longer. Try 3, 5 and 7 years above and watch the total-interest figure climb β the cheaper monthly payment is rarely the cheaper loan.
Should I make extra payments or invest instead?
A rough rule: if your loan's rate is higher than what you could reliably earn elsewhere, extra payments win β they're a guaranteed return equal to the rate. Compare the interest saved above against what the same money might grow to in our Compound Interest Calculator.
What is the amortization schedule for?
It's the month-by-month record of how each payment splits between principal and interest, and what balance remains. Use it to see exactly when you cross the halfway point, to check a lender's figures, or to plan a lump-sum payment. Download it as CSV to keep your own copy or open it in a spreadsheet.
Tools that pair with this one
- Mortgage Calculator β for a home loan, add down payment, property tax, insurance and PMI to see the full monthly cost.
- Compound Interest Calculator β weigh paying the loan down faster against investing the same money.
- Discount Calculator β check a dealer rebate or cash-back offer before it changes the amount you finance.
Estimates for educational purposes only β not financial advice. Your lender's actual figures may include fees this tool does not model.