📅 Amortization Calculator

What is an Amortization Calculator?

An Amortization Calculator breaks down a loan into its periodic payment schedule, showing exactly how much of each payment goes toward principal versus interest over the loan's lifetime.

How It Works

The tool calculates a fixed payment amount, then for each period determines the interest portion based on the remaining balance, with the rest reducing the principal.

How to Use This Tool

Enter the loan amount. Enter the annual interest rate. Enter the loan term in months or years. Click Calculate to see your full amortization schedule and total interest paid.

Examples

Example 1: A 1000000 rupee loan at 8 percent for 20 years shows higher interest portions early on, gradually shifting toward more principal repayment over time.

Example 2: Making extra principal payments early in the schedule significantly reduces total interest paid over the loan's life.

Common Use Cases

Understanding how home or auto loan payments are structured over time. Planning extra payments to reduce total interest paid. Comparing amortization schedules across different loan terms. Verifying lender provided amortization tables for accuracy.

Frequently Asked Questions

Why is more interest paid early in a loan. Interest is calculated on the remaining balance, which is highest at the start of the loan.

Does making extra payments change the amortization schedule. Yes, extra payments reduce principal faster, shortening the loan and reducing total interest.

What is the difference between amortization and a regular payment schedule. Amortization specifically shows the principal and interest breakdown for each payment period.

Can amortization apply to any fixed rate loan. Yes, mortgages, auto loans, and personal loans with fixed rates all follow amortization principles.

Why does the principal portion increase over time. As the balance decreases, less interest accrues, so a larger share of each fixed payment goes to principal.