Loan Amortization Calculator
View your loan schedule and amortization.
Financial Planner PRO
US
Monthly Payment
$890.83
Total Repayment
$10,690
Estimated CAT
14.4%
*Subject to credit verification. T&Cs apply.
Understand Your Loan Schedule
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. Early in a loan term, the majority of your payment goes toward interest. As time passes, more of your payment goes toward principal. Our Amortization Calculator makes this complex math simple and transparent.
Key Amortization Concepts
Principal
The actual amount of money you borrowed. This balance decreases with every payment, slowly at first, then faster.
Interest
The cost of borrowing money. This is calculated based on your remaining principal balance each month.
How Amortization Works
Lets say you take out a $20,000 loan for 5 years at 6% interest.
- Year 1: Your payments are mostly interest. You wont see the balance drop as fast as you expect.
- Year 3: You reach the "tipping point" where more payment starts going to principal.
- Year 5: Your final payments are almost entirely principal, clearing the debt.
FAQ
What is negative amortization?
This happens when your monthly payment is less than the interest due. The unpaid interest gets added to your principal, meaning your debt actually grows over time. Avoid this at all costs.
How can I amortize faster?
The only way to speed up amortization is to make extra payments towards the principal. Even $50 extra a month can significantly shift the curve in your favor.