Amortization Calculator
Payment Schedule
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What Is an Amortization Calculator?
An amortization calculator is a tool that shows how a loan decreases over time as you make regular payments.
Each payment usually includes:
- Interest: the cost of borrowing money
- Principal: the amount that reduces your loan balance
At the start of a loan, most of your payment goes toward interest. Over time, more of each payment goes toward principal. This gradual shift is called amortization.
Common loans that use amortization include:
- Mortgages
- Auto loans
- Personal loans
- Student loans
Why an Amortization Calculator Matters
Loans can look simple on the surface, but the long-term cost is often surprising. An amortization calculator helps you see the full picture.
Here is what it helps you do:
- Know your regular payment amount
- See total interest paid over the loan term
- Understand how long the loan really lasts
- Test the impact of extra payments
- Compare monthly, bi-weekly, and weekly payments
In short, it turns a loan from a mystery into a plan.
How This Amortization Calculator Works
The calculator you shared is practical and user-friendly. It focuses on real-world loan behavior, not just theory.
Inputs You Provide
You start by entering a few key details:
Loan Amount
The total amount you borrow. Example: $250,000.
Annual Interest Rate
The yearly interest rate charged by the lender. Example: 4.5%.
Loan Term (Years)
How long the loan lasts if you make only regular payments. Example: 30 years.
Payment Frequency
You can choose:
- Monthly
- Bi-weekly (every 2 weeks)
- Weekly
Extra Payment Per Period
Any extra money you want to add to each payment. This goes straight to the principal.
First Payment Date
The date your loan payments begin. This allows the calculator to estimate a payoff date.
What the Calculator Shows You
After clicking Calculate, the results section appears. Each number answers a real question borrowers often ask.
Regular Payment
This is the required payment based on your loan terms, not including extra payments.
Total Payment (With Extra)
This shows how much you pay each period when extra payments are included.
Total Interest Paid
The full interest cost over the life of the loan.
Total Amount Paid
The loan amount plus all interest paid.
Payoff Date
The estimated date when your loan balance reaches zero.
Interest Saved With Extra Payments
How much interest you avoid paying by adding extra money.
Time Saved With Extra Payments
How much faster the loan ends because of extra payments.
These numbers make the cost of borrowing very real.
Understanding the Amortization Schedule
Below the results, the calculator displays an amortization schedule.
This table shows each payment in order, including:
- Payment number
- Payment date
- Total payment amount
- Principal portion
- Interest portion
- Remaining balance
Early rows show high interest and low principal. Later rows show the opposite. Watching the balance drop over time is one of the most useful parts of the calculator.
To keep things readable, the table shows the first few and last few payments if the loan is long.
How Extra Payments Change Everything
Extra payments are powerful because they reduce the principal directly.
Even small extra payments can:
- Cut years off your loan
- Save thousands in interest
- Increase your equity faster
For example, adding $100 extra to a monthly mortgage payment may not feel dramatic today, but over 20 or 30 years, the savings can be huge.
This calculator clearly shows:
- Interest saved
- Time saved
That feedback helps people stay motivated.
Monthly vs Bi-Weekly vs Weekly Payments
Payment frequency affects how fast your loan shrinks.
- Monthly: standard and predictable
- Bi-weekly: results in one extra full payment per year
- Weekly: reduces balance even faster but requires steady cash flow
The calculator adjusts interest calculations based on the frequency you choose, which makes the results more accurate.
Who Should Use an Amortization Calculator?
This tool is useful for:
- Home buyers comparing mortgage options
- Homeowners planning extra payments
- Borrowers refinancing a loan
- Anyone who wants to reduce interest costs
If you have a loan and plan to make payments, this calculator applies to you.