Amortization Calculator
Loan Details
Results Summary
| Monthly Payment | — |
|---|---|
| Total Interest Paid | — |
| Total Cost of Loan | — |
Visual Breakdown
Enter values and press Calculate to see the loan breakdown pie chart and balance path line chart.
How Amortization Works
Amortization is the process of spreading out a loan into a series of equal periodic payments. Over time, the ratio of your payment going toward interest decreases, while the portion going toward principal increases.
The Amortization Formula
The monthly payment ***M*** is calculated using the following formula:
- ***M = L × [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ - 1 ]***
Where:
- ***L*** = Loan Principal Amount
- ***i*** = Monthly Interest Rate (APR / 100 / 12)
- ***n*** = Total number of payments (Term in years × 12)
Disclaimer. This calculator is for informational purposes only. Actual interest rates, closing costs, and monthly payments may vary depending on lender terms, credit scores, and local taxes.