Amortization Calculator
Calculate loan amortization schedules and monthly payments for mortgages, auto loans, personal loans, and other installment loans. This comprehensive calculator shows you the breakdown of principal and interest payments over the life of your loan.
Loan Information
| Loan Amount: | |
| Interest Rate: | |
| Loan Term: | |
| Start Date: | |
Amortization Basics
Principal: The original loan amount
Interest: The cost of borrowing money
Amortization: The process of paying off debt with regular payments
Term: The length of time to repay the loan
About Loan Amortization
Loan amortization is the process of paying off a debt over time through regular payments. Each payment consists of both principal and interest, with the proportion changing over the life of the loan.
How Amortization Works
- Early Payments: Higher portion goes to interest
- Later Payments: Higher portion goes to principal
- Fixed Payments: Total payment amount stays the same
- Declining Balance: Interest calculated on remaining balance
Types of Loans
| Loan Type | Typical Term | Interest Rate Range |
|---|---|---|
| Mortgage | 15-30 years | 3.0% - 8.0% |
| Auto Loan | 3-7 years | 2.0% - 10.0% |
| Personal Loan | 2-7 years | 5.0% - 25.0% |
| Student Loan | 10-25 years | 3.0% - 12.0% |
Benefits of Understanding Amortization
- Plan your budget with accurate payment amounts
- Understand how much interest you'll pay over time
- Compare different loan options effectively
- Make informed decisions about extra payments
- Track your loan balance and equity buildup
Related Calculators
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- Auto Loan Calculator - Calculate car loan payments
- Loan Comparison Calculator - Compare multiple loans
- Refinance Calculator - Analyze refinancing options