Calculate a fixed-rate loan payment and view how each payment is divided between principal and interest over the full repayment period.
Use the calculator below to generate a complete amortization schedule.
Early payments on many fixed-rate loans contain more interest. As the balance declines, more of each scheduled payment generally goes toward principal.
| Year | Beginning Balance | Payments | Principal Paid | Interest Paid | Ending Balance |
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| Payment | Date | Payment Amount | Principal | Interest | Remaining Balance |
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Amortization is the process of repaying a loan through scheduled payments over a set period. Each payment generally includes both principal and interest.
With a typical fixed-rate amortizing loan, the required principal-and-interest payment remains relatively constant while the composition of that payment changes.
Principal is the amount of the payment that reduces the outstanding loan balance. As the balance gets smaller, the principal portion of many fixed-rate loan payments generally becomes larger.
Interest is the cost of borrowing. Because interest is calculated using the remaining loan balance, the interest portion is usually higher near the beginning of the repayment schedule.
An amortization schedule lets you see the estimated balance after each payment, how much interest has been paid and how quickly principal is being reduced. It can also help when comparing different loan terms.
Amortization refers to gradually repaying a loan through scheduled payments that reduce the loan balance over time.
Interest is generally calculated from the outstanding balance. Because the balance is largest near the beginning of the loan, the interest portion of early payments is typically larger.
The scheduled principal-and-interest payment on a standard fixed-rate fully amortizing loan generally remains constant. Taxes, insurance and other housing costs are separate and may change over time.
No. This calculator focuses specifically on loan principal and interest. Use the LoanMathWorks Mortgage Calculator if you want to include estimated property taxes, insurance, PMI and HOA costs.
Yes. Additional principal payments may reduce the outstanding balance faster, shorten the repayment period and reduce future interest. Use the LoanMathWorks Extra Mortgage Payment Calculator to explore those scenarios.
Differences can occur because of payment dates, rounding methods, interest calculation conventions, loan-specific terms and other lender practices. LoanMathWorks provides estimates for educational purposes.