Amortization Calculator

A loan amortization calculator is your most valuable tool if you’re planning to take out a loan. Banks come up with all sorts of ways to profit from borrowers, so you need to accurately assess your financial capacity. Calculating your loan amortization helps turn your dreams—like buying a new car or an apartment—into a clear action plan. With our tool, you can create a detailed loan repayment schedule. By generating an amortization schedule online, you can plan your budget months or even years in advance. Simply enter three basic parameters: the amount you want to borrow, the interest rate offered by the bank, and the term over which you plan to repay the debt. And after clicking the generate button, the system instantly calculates the total interest on the loan. The loan repayment schedule generated by the system can be easily saved to your device, emailed to yourself, or printed. This is very convenient if you’re comparing offers from several different banks. By laying out three different printouts in front of you, you’ll immediately see which terms are better.

In the early years, most of your money goes toward paying interest, and only a small portion reduces the principal balance. This is called amortization. Using our free calculator, you can track when you’ll stop paying interest and start paying down the principal.

Mortgage loans are issued for decades. Mistakes can cost millions and years of tight budgeting. Over such long terms, even a difference of 0.5% per year can make a significant difference. For example, if you take out a 20-year mortgage at a 10% interest rate for $60,000, the monthly payment will be approximately $580, and the total overpayment over the entire term will be about $79,000. If you choose a shorter term—15 years with the same amount and rate—the monthly payment will increase to about $645, but the total overpayment will decrease to $56,000. Thus, a shorter loan term requires higher monthly payments but allows you to save significantly on interest. As shown in the table, just a slight reduction in the term saves you $23,000!

In addition, our calculator always takes the type of payments into account. The banking system typically uses two main types, but the difference between them is significant. Most often, banks offer the annuity option. This means you will pay the same fixed amount every month throughout the entire term. However, some financial institutions offer a graduated repayment plan. With this scheme, the principal is paid off in equal installments, while interest is charged on the remaining balance. As a result, the initial payments are very large, but they decrease over time. Always check with the lender about the possibility of early repayment without penalties. Making even the smallest overpayments in the first few years can drastically change the total amount overpaid.