What is amortization?

Amortization is the gradual repayment of a loan through regular payments. Each payment covers both interest and principal, with interest decreasing over time.

Loan Calculator

Calculate monthly payment, total interest and amortization schedule.

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Loan Amount

Annual Interest Rate (%)

Term (months)

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About this calculator

Our loan calculator uses the standard PMT formula to compute your exact monthly payment for any loan amount, interest rate, and term. The amortization schedule shows exactly how much of each payment goes toward principal vs interest.

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Frequently Asked Questions

The monthly payment is calculated using: M = P × [r(1+r)^n] / [(1+r)^n-1], where P is the principal, r is the monthly rate, and n is the number of payments.