A familiar situation
When reviewing a fixed-rate loan, it helps to know how much of the first payment actually reduces the balance. Use the amortization calculator to compare the scheduled payment and its initial principal and interest portions.
How to use this calculator
- Enter loan amount, annual interest rate, term.
- Select Calculate to see the answer and its breakdown.
- Keep a scenario, change an input and compare the results.
Use consistent units and check the assumptions below before applying the result.
How amortization is calculated
This estimate assumes a fixed annual rate, equal monthly payments and no separate escrow. Early payments contain more interest; over time the principal share grows as the balance falls. Formula: Interest this period = opening balance × periodic rate; principal paid = payment − interest. Use the displayed details to inspect the intermediate amounts and replace example assumptions with terms from your own quote or records.
Interest this period = opening balance × periodic rate; principal paid = payment − interest.On $100,000 at 6% for 20 years, the first month accrues $500 interest before principal is reduced.
Assumptions & useful context
Assumes a fixed rate and equal monthly payments; fees and insurance are excluded.
Financial projections use your assumptions. Actual returns, lender terms, fees and tax rules can differ; these results do not guarantee a future outcome.
Frequently asked questions
Amortization Calculator: what does the result include?
No. It is principal and interest only unless those costs are part of the financed principal. Add escrow and recurring fees when comparing it with a lender’s full payment.
Amortization Calculator: which assumptions matter most?
A longer term usually lowers each scheduled payment but gives interest more time to accrue. Compare total interest as well as the monthly amount.