Enter a loan amount, interest rate, and term to calculate the fixed monthly payment and see the principal, interest, and remaining balance broken out year by year.

How to Use the Amortization Calculator

Loan amount, rate, and term are the only three fields — once they're filled in, scroll past the summary figures for the year-by-year schedule broken out below.

Any fixed-payment loan — not just a mortgage — amortizes the same way: a level payment that covers more interest than principal early on, and flips that ratio as the balance shrinks. This calculator runs the year-by-year breakdown for a generic loan, so you can see exactly how much of each year's payments actually chips away at what you owe.

M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]

P is the loan amount, r the monthly rate (annual ÷ 12), n the number of monthly payments. The payment M stays constant; what changes month to month is the split between interest (charged on the remaining balance) and principal (whatever's left over). Add those splits up by year and you get the schedule below the result.

Two loans with identical rate and term can still amortize differently if their principal differs, so this tool doesn't assume you're financing a house — car loans, personal loans, and business loans all follow the identical formula, just with different numbers plugged in.