- Open the Loan Amortization Calculator and find the main field: Principal, rate %, term months.
- Type your values in that field. The placeholder shows an example format (200000, 6, 360).
- Click "Calculate" to compute the result in your browser.
- Read the result in the Result section. Use Copy to paste the output elsewhere.
Loan Amortization Calculator
The Loan Amortization Calculator calculates the monthly payment for a loan and generates a
Calculator
Enter the values described below, then run. Use Load sample to try a prefilled example when available.
Format hints
200000
How to Use This Tool
Learn More About Loan Amortization Calculator
Understanding Loan Amortization
Loan amortization is the process of paying off a loan over time through regular payments. Each payment typically includes a portion of the principal (the original loan amount) and a portion of the interest (the cost of borrowing the money).
Loan Amortization Formula
The formula to calculate the monthly payment (M) is: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] Where: P = Principal loan amount i = Monthly interest rate (annual rate / 12) n = Number of payments (loan term in years * 12)
Understanding the Amortization Schedule
The amortization schedule shows how each payment is allocated between principal and interest over the life of the loan. In the early years, a larger portion of the payment goes towards interest, and as the loan is paid down, a larger portion goes towards principal.
About
The Loan Amortization Calculator calculates the monthly payment for a loan and generates an amortization schedule, showing how each payment is allocated between principal and interest over the loan term.
Examples
Valid loan inputs
Principal, rate %, term months
Input
{"loan_amount":200000,"interest_rate":4.5,"loan_term":30}Output
Shown in the Result area after you click the action button.
Another valid loan input
Principal, rate %, term months
Input
{"loan_amount":100000,"interest_rate":6,"loan_term":15}Output
Shown in the Result area after you click the action button.
Use Cases
- Calculating monthly payments for loans.
- Understanding the breakdown of principal and interest payments.
- Comparing different loan options.
- Planning for loan repayment.