Amortization Calculator
Loan amortization schedule by year
This free Amortization Calculator builds the full repayment story of any loan and summarises it year by year. Enter the loan amount, interest rate and term, and it calculates the fixed monthly payment, the total interest, and a table showing, for every year, how much you paid, how much of it reduced the balance, how much vanished as interest, and what you still owe at year's end. An optional extra monthly payment field reveals the single most persuasive fact in borrowing: even a modest extra amount each month can cut years off a loan and save a startling amount of interest.
Amortization explains why loan balances seem to barely move at first. Interest is charged on whatever you currently owe, so early payments are interest-heavy and later payments are principal-heavy, even though the payment itself never changes. Extra payments attack the balance directly, which lowers every future interest charge — a snowball that the year table makes visible as the finish line pulls closer. The schedule assumes a fixed rate and on-time monthly payments, so real loans with variable rates or fees will differ slightly. Everything runs locally in your browser; your loan figures are never uploaded or stored.
How to use
- Enter the amount you are borrowing.
- Type the yearly interest rate and the term in years.
- Optionally add an extra amount you could pay monthly.
- Click Build schedule to see the payment, totals and table.
- Compare runs with and without the extra payment to see the saving.
Frequently asked questions
What does amortization actually mean?
It is the process of clearing a debt through regular fixed payments that cover both interest and principal. Each payment is the same size, but the mix inside it changes over time: interest first dominates, then principal takes over as the balance shrinks.
Why does an extra payment save so much?
Extra money goes straight off the balance, so next month's interest is calculated on a smaller debt, and that saving repeats every month for the rest of the loan. On long loans the combined effect routinely reaches tens of thousands, and the term shortens as well.
Should I check anything before overpaying a real loan?
Yes: confirm the loan has no early repayment charges, and tell the lender the extra is a principal payment, not an advance on future instalments. Also keep an emergency fund first; money paid into a loan is hard to get back out.
Why does my table end before the full term?
That happens when an extra payment is entered: the loan is genuinely finished early, so the table stops at payoff and the summary tells you the new, shorter time it took. Without extra payments the table always runs the complete term.