Amortization Calculator

Modify the values and click the calculate button to use

$
yrs mo
%

Monthly Pay:   $1,687.71

Total of 180 monthly payments$303,788.46
Total interest$103,788.46

Amortization schedule

YearInterestPrincipalEnding Balance
1$11,769.23$8,483.33$191,516.67
2$11,246.00$9,006.57$182,510.10
3$10,690.49$9,562.07$172,948.02
4$10,100.72$10,151.84$162,796.18
5$9,474.58$10,777.98$152,018.20
6$8,809.82$11,442.75$140,575.45
7$8,104.05$12,148.51$128,426.94
8$7,354.76$12,897.80$115,529.13
9$6,559.25$13,693.31$101,835.82
10$5,714.68$14,537.89$87,297.94
11$4,818.01$15,434.55$71,863.38
12$3,866.04$16,386.52$55,476.86
13$2,855.36$17,397.21$38,079.66
14$1,782.34$18,470.23$19,609.43
15$643.13$19,609.43$0.00

This amortization calculator is designed to make your payment schedule easier than ever. You can break down a fixed-rate loan into multiple installments. It shows you exactly how each payment will be calculated based on the interest rate and principal. You just have to put the loan amount, term, and interest rate. It will provide you with a precise payoff timeline and the impact of the extra payments.

What is Amortization?

Amortization is a financial term used to describe a process in which a loan or the cost of an asset or property is spread over a fixed period. In financial calculations, it is about paying a specific debt and interest charges at regular installments.

How Loan Amortization Works Over Time

Below are the basic components of a mortgage amortization calculator and its framework.

Monthly Loan Payments

When borrowers get a loan from a lender, a bank, or any other financial aid authority, they have to pay some amount on a regular basis. It covers the interest charges on the loan and some additional amount to reduce the principal. The remaining debt reduces over time, and the interest charges also decrease.

If the borrower pays a fixed amount to the lender every 30 days, these are called monthly payments. They depend on the contract, total amount borrowed, and the loan term.

Loans That Are Not Amortized

Some loans are not amortized. Examples include:

  • Credit Cards: Revolving debt with variable monthly payments.
  • Interest-Only Loans: Borrowers pay only interest initially, then begin paying principal.
  • Balloon Loans: Smaller payments initially with a large final payment.

Amortization Schedule

An amortization schedule is a detailed table that breaks down each periodic payment over the life of the loan. At the start, a larger portion of the payment goes toward interest. Over time, more of the payment reduces the principal balance.

Payment Breakdown Per Period

  • Interest Payment: The amount paid monthly based on the remaining loan balance.
  • Principal Payment: The portion that reduces the total loan amount.

Tracking Loan Progress

  • Total interest paid to date
  • Total principal paid to date
  • Remaining loan balance after each payment period

Important Limitations

  • Does not automatically account for extra payments
  • Does not include additional fees
  • Primarily applies to fixed-rate loans
  • Not ideal for adjustable-rate mortgages (ARMs) or revolving credit

Spreading Costs Through Amortization

Amortization for Physical Assets

Companies often purchase machinery, buildings, offices, and equipment over long-term loan periods. Instead of paying the entire amount upfront, they divide it into manageable installments. For tangible assets, this process is more commonly referred to as depreciation.

Depreciation vs. Amortization

  • Depreciation: Applies to tangible assets such as machinery and buildings.
  • Amortization: Applies to intangible assets such as patents and trademarks.

Amortization of Intangible Assets

In accounting, amortization spreads the cost of intangible assets over time. According to Section 197 of U.S. law, certain intangible assets can be deducted monthly or annually.

Examples of Intangible Assets

  • Goodwill
  • Going-concern value
  • Workforce in place
  • Business records and operating systems
  • Patents, copyrights, formulas, and designs
  • Customer-based intangibles
  • Supplier relationships
  • Government licenses and permits
  • Non-compete agreements
  • Franchises, trademarks, and trade names
  • Contract usage rights

Intangible Assets That May Not Be Amortized

Some intangible assets with indefinite useful lives, such as self-created assets, may not qualify for amortization.

Assets Not Considered Intangible Under US Section 197

  • Interests in businesses
  • Land
  • Most computer software
  • Existing leases of tangible property
  • Existing debt instruments
  • Certain mortgage servicing rights
  • Specific transaction costs where gains or losses are not recognized

Amortizing Startup Costs

Startup costs are expenses incurred before business operations begin. These costs may be amortized under IRS guidelines if they qualify as deductible business expenses.

Examples of Startup Costs

  • Consulting fees
  • Financial analysis of acquisitions
  • Pre-launch advertising expenses
  • Pre-opening employee wages and training costs

Plan Your Loan Schedule Before Signing an Agreement

Don’t commit blindly. Review your full repayment schedule to understand monthly payments, interest costs, and total loan expense in a single click.