Generate a full amortization schedule with monthly payment breakdown, total interest, interest tipping point, and extra payment savings. Enter your loan amount, interest rate, and term to see every payment mapped out.
Select your loan type (mortgage, car, or personal loan), then enter the loan amount, annual interest rate, and loan term in years. Set a start date to see actual calendar months in the schedule.
Enter any extra amount you plan to pay each month beyond the minimum. The calculator immediately shows how many months earlier you will pay off the loan and how much total interest you will save.
Scroll through the full month-by-month schedule showing each payment split between principal and interest, plus the running loan balance. The interest tipping point — the month when more of your payment goes to principal than interest — is highlighted.
Amortization is the process of gradually paying off a debt through regular scheduled payments that cover both interest and principal. Early in a loan's life most of the payment covers interest. Over time the principal portion grows as the outstanding balance decreases, reducing the interest charge each month.
The standard formula is M = P × r(1+r)ⁿ / ((1+r)ⁿ - 1), where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of payments. This keeps the monthly payment constant while the split between principal and interest changes each month.
The interest tipping point is the specific payment number where more of your monthly payment goes toward principal than toward interest for the first time. For a 30-year mortgage at typical rates, this usually occurs around payment 18-19 (year 18-19). Before this point, the majority of every payment is interest. Understanding this helps you see why early extra payments are so powerful.
Even a small extra monthly payment has a significant compounding effect. On a 30-year $300,000 mortgage at 7%, an extra $100/month saves roughly $40,000 in interest and cuts about 4 years off the loan. The earlier in the loan term you make extra payments, the greater the savings because interest charges decrease faster.
Negative amortization occurs when your monthly payment is less than the interest accrued, causing the loan balance to increase rather than decrease. This can happen with some adjustable-rate mortgages, graduated payment mortgages, or income-driven repayment plans. This standard amortization calculator does not model negative amortization.
Both spread a cost over time, but they apply to different assets. Amortization applies to intangible assets (patents, trademarks) and loan repayments — as used here. Depreciation applies to tangible physical assets (equipment, vehicles, buildings). In loan context, amortization specifically describes the gradual repayment of principal through scheduled payments.
