Free Loan Amortization Calculator - View Payment Schedule
Calculate monthly loan payments and view a detailed amortization schedule
Formula & Methodology
The amortization schedule calculates how each monthly payment is split. Early in the loan term, the majority of your payment goes toward paying off the interest. Over time, the balance shifts, and a larger portion goes toward paying down the principal balance.
- Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
- Total Interest Paid = (Monthly Payment × n) - P
- Total Amount Paid = P + Total Interest Paid
Worked Example
Using the Loan Amortization Calculator: apply the formula above to your input values. For instance, Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1], then Total Interest Paid = (Monthly Payment × n) - P. The tool performs each step instantly and shows the result.
Frequently Asked Questions
What is an amortization schedule?
It is a table showing every payment over the life of your loan, split into how much goes to interest and how much reduces the principal balance.
Why does most of my early payment go to interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, more of each fixed payment goes toward principal.
How do extra payments change my schedule?
Extra principal payments shrink the balance faster, cutting both the number of remaining payments and the total interest you pay.