What is the Amortization Calculator?
See how your loan balance falls year by year and how much of each payment goes to interest. Money decisions are easier when you can see the numbers. Our finance calculators use the same standard formulas banks and financial planners use — amortization, compound interest and present-value math — so you can compare options before you commit.
How to use the Amortization Calculator
- Enter your loan amount, your annual interest rate, your term.
- Results update automatically as you type; you can also press Calculate.
- Read the output: monthly payment, balance after 5 years, total interest.
- Use the 📊 chart to see the result visually, then copy or share it.
Formula and method
Worked example
With loan amount = $200,000, annual interest rate = 6 %, term = 30 years, the Amortization Calculator returns monthly payment: $1,199.10; balance after 5 years: $186,108.71; total interest: $231,676.38.
Tips for better results
- Compare at least two scenarios (for example, a 15- vs 30-year term) before deciding.
- Small rate differences compound: a 0.5% lower rate can save thousands over a long loan.
- Results are estimates; your lender’s fees, taxes and exact day-count rules may change the final figure.
⚠️ These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Frequently asked questions
What does the Amortization Calculator do?
See how your loan balance falls year by year and how much of each payment goes to interest.
How is it calculated?
The Amortization Calculator uses this method: Balance after month k = B × (1 + r) − Payment, repeated each month.
Can you show an example?
With loan amount = $200,000, annual interest rate = 6 %, term = 30 years, the Amortization Calculator returns monthly payment: $1,199.10; balance after 5 years: $186,108.71; total interest: $231,676.38.
Is the Amortization Calculator accurate?
It uses standard published formulas and is tested against known values, but results are estimates for guidance. These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Is this tool free and private?
Yes — the Amortization Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.
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