Loan Amortization Calculator

How to use this calculator

1. Enter or choose loan amount.
2. Enter or choose interest rate (per year).
3. Enter or choose loan term.
4. Enter or choose term in.
5. The monthly payment updates as you type. Use Copy result or Share to keep it.

Formula

Interest in month k = previous balance × r; new balance = previous balance − (payment A − interest)

A

monthly payment (same formula as EMI)

r

monthly rate

B

balance after each payment

I

interest part of each payment

Worked example

1. Payment A for $100,000 at 1% a month over 12 months = $8,884.88.
2. Month 1 interest = 100,000 × 0.01 = $1,000, so principal repaid = 8,884.88 − 1,000 = $7,884.88.
3. New balance = 100,000 − 7,884.88 = $92,115.12; month 2 interest is $921.15.
4. This repeats until the 12th payment clears the balance.

Twelve payments of $8,884.88 repay the loan, with about $6,618.55 of interest in total.

What the result means

Read down the schedule: the interest column shrinks and the principal column grows every month. Any extra payment goes straight to principal and removes all the future interest on it.

Assumptions and limits

• Fixed rate, monthly payments, interest on the reducing balance.
• The final payment is adjusted by a few cents so the balance ends at exactly zero.
• Fees, insurance and payment holidays are not modelled.