About the Loan Amortization Calculator
Amortization is how a fixed loan is paid down: early payments are mostly interest, later ones mostly principal. This calculator produces the full schedule so you can see exactly how your balance falls over the life of the loan.
How it’s calculated
Each period, interest = balance × periodic rate, principal = payment − interest, and the balance falls by the principal portion. The schedule repeats until the balance reaches zero.
Example calculation
On a $25,000 loan at 7% over 5 years, the first payment is mostly interest; by the final year almost all of each payment reduces principal.
Frequently asked questions
Why is early interest so high?
Interest is charged on the outstanding balance, which is largest at the start. As the balance falls, the interest portion of each fixed payment shrinks and the principal portion grows.
How is this different from the loan calculator?
It's the same underlying math with the emphasis on the full period-by-period schedule. Use whichever framing is clearer for you.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.