Amortization Calculator
Amortization Calculator — Full Payment Schedule
Supports home loans, auto loans, personal loans with optional extra monthly, yearly, or one-time payments
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
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Live Schedule
Full amortization table updates in real-time as you change loan amount, rate, or tenure.
Extra Payments
Model the impact of extra monthly, yearly, or one-time lump-sum prepayments on your loan payoff date.
Annual & Monthly View
Switch between year-wise summaries and a full month-by-month payment breakdown.
Understanding Amortization
What is Amortization and How Does It Work?
A complete guide to loan amortization, schedules, and repayment strategies
Amortization refers to the process of paying off a loan through regular, scheduled payments over time. Each payment covers both the interest owed and a portion of the principal balance, so that by the end of the loan term the debt is completely eliminated.
When you take out a mortgage, car loan, or personal loan, the lender creates an amortization schedule — a complete table showing every payment you'll make over the life of the loan, broken into its interest and principal components. In the early years, most of each payment goes toward interest. Over time, as the outstanding principal decreases, the interest portion shrinks and more of each payment reduces the principal. This is why even small extra payments made early in the loan term save a disproportionate amount of interest.
The systematic repayment of a loan — such as a mortgage, auto loan, or personal loan — through fixed periodic payments over a set term. Each payment reduces the outstanding principal and covers accrued interest.
In accounting, amortization spreads the cost of an intangible asset (patent, copyright, goodwill) over its useful life. Similar to depreciation for physical assets, it smooths the expense impact across multiple periods.
Credit cards (revolving debt), interest-only loans, and balloon loans are not amortized in the traditional sense — they either carry a variable balance or defer principal repayment to maturity.
Monthly payment is calculated using the standard reducing-balance formula, identical to the EMI formula:
For example, a $200,000 loan at 6% p.a. for 15 years gives r = 6/12/100 = 0.005, n = 180. Monthly payment = $1,687.71. Total paid = $303,788.46, so total interest = $103,788.46. This calculator uses this same formula and builds a complete payment-by-payment schedule from it.
A higher loan amount means more interest is charged each period, since interest is calculated on the outstanding balance. Reducing the principal through a larger down payment directly reduces every future payment.
Even a 0.5% change in rate materially shifts the total interest over a long term. Fixed-rate loans produce perfectly predictable schedules; adjustable-rate loans require re-amortization at each rate change.
A longer term reduces monthly payments but greatly increases total interest paid. A 30-year mortgage at the same rate costs significantly more than a 15-year mortgage — use the calculator to compare the difference.
Additional payments — monthly, yearly, or lump-sum — directly reduce the outstanding principal, shrinking future interest charges and shortening the loan term. The earlier extra payments are made, the greater the savings.
An amortization schedule (also called an amortization table) is a complete record of every periodic payment on an amortizing loan. For each payment period it shows: the payment number or date, the total payment amount, how much goes to interest, how much goes to principal, and the remaining loan balance.
Schedules can be displayed monthly (full detail, one row per payment) or annually (year-wise summary, useful for long-term planning). This calculator provides both views. Note that basic amortization schedules assume fixed interest rates and do not automatically account for extra payments — which is why this calculator has a dedicated extra-payment feature so you can model prepayment scenarios.
In accounting, all three terms describe the spreading of a cost over time, but they apply to different asset types. Amortization covers intangible assets such as patents, copyrights, trademarks, goodwill, and licenses. Depreciation covers tangible long-lived assets like machinery, buildings, vehicles, and equipment. Depletion applies to natural resources — oil reserves, timber, minerals — that are physically consumed over time.
Under Section 197 of U.S. tax law, most intangible assets acquired in connection with a business purchase must be amortized over 15 years for tax purposes, regardless of their actual economic life. Some assets — such as interests in land, most software, or self-created intangibles not acquired with a business — are explicitly excluded from Section 197 amortization.