Finance
Amortization Calculator
Generate a loan amortization schedule.
Monthly payment
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Total interest (full term)
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First 12 months schedule
| # | Principal | Interest | Balance |
|---|---|---|---|
| Enter values above to see schedule. | |||
FAQ
- What formula is used to calculate the monthly payment?
- The standard amortization formula: M = 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.
- How is each row in the schedule computed?
- For each period, interest = remaining balance * monthly rate; principal = monthly payment - interest; new balance = previous balance - principal paid. This repeats until the loan is fully paid off.
- Why does the table only show 12 months?
- The first 12 months give a clear picture of early amortization, where interest makes up the largest share of each payment. The summary figures (monthly payment and total interest) reflect the full loan term.