Loan Amortization Calculator

Loan amortization is the process of spreading a loan into a series of fixed payments over time. Each payment covers both interest and principal, with the interest portion decreasing and the principal portion increasing as the balance declines.

The monthly payment uses the standard annuity formula: PMT = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. For example, a $200,000 loan at 6% for 30 years gives PMT = $1,199.10/month.

While the EMI Loan Calculator shows your monthly payment and a basic summary, the Loan Amortization Calculator provides a complete month-by-month schedule showing exactly how much of each payment goes toward principal vs. interest, plus the remaining balance after every payment.

Extra payments go directly toward reducing the principal balance. Since interest is calculated on the remaining balance each month, a lower balance means less interest accrues. On a $200,000 loan at 6% for 30 years, an extra $200/month saves roughly $65,000 in interest and pays off the loan about 8 years early.

Interest is charged on the outstanding balance, which shrinks with each payment. In the first month of a $200,000 loan at 6%, interest is $1,000 (0.5% × $200,000). By year 15 the balance is around $142,000, so monthly interest drops to about $710. The fixed payment stays the same but the principal share grows.

Yes. Any fixed-rate, fully amortizing loan follows the same formula regardless of purpose — home mortgages, car loans, student loans, or personal loans. Enter the loan amount, annual interest rate, and term to get the full amortization schedule.