Amortization Calculator
Results
Monthly Payment: $
Total Interest Paid: $
Total Amount Paid: $
How to Use the Amortization Calculator
An amortization calculator is a financial tool used to determine the monthly payment, total interest, and full repayment cost of a loan over time.
This calculator is especially helpful when you’re planning to take out a mortgage, car loan, personal loan, or student loan and want a clear understanding of the payment structure.
What the Calculator Does
It takes three key inputs:
- Loan Amount – The total money you plan to borrow.
- Interest Rate – The annual percentage interest charged by your lender.
- Loan Term – The number of years over which you’ll repay the loan.
Using these, the calculator computes:
- Monthly payment
- Total interest paid over the term
- Total repayment amount (principal + interest)
How to Use It Step-by-Step
Step 1: Enter Loan Amount
Type in the total amount of the loan (e.g., 250000).
Step 2: Enter Interest Rate
Input the annual interest rate as a percentage (e.g., 5 for 5%).
Step 3: Enter Loan Term
Put the number of years you plan to repay the loan (e.g., 30).
Step 4: Click “Calculate.”
Click the button, and the results will appear showing:
- Your monthly payment
- The total interest
- The total repayment
Example
Loan Amount: $250,000
Interest Rate: 5%
Term: 30 years
Results:
- Monthly Payment: ~$1,342.05
- Total Interest: ~$233,133.89
- Total Paid: ~$483,133.89
FAQ – Amortization Calculator
Q1: What is amortization?
Amortization is the gradual reduction of a loan balance over time through regular payments that cover both interest and principal.
Q2: What types of loans can this calculator be used for?
It works for mortgages, personal loans, auto loans, student loans, or any fixed-term loan with regular payments.
Q3: Does this include taxes or insurance?
No. This calculator only includes principal and interest. Property taxes, homeowners' insurance, or PMI must be added separately if applicable.
Q4: Is the interest compounded monthly?
Yes. Most standard loans (especially mortgages) are calculated with monthly compounding, and this calculator reflects that.
Q5: What if my interest rate changes over time?
This calculator assumes a fixed interest rate. If your rate is variable, results will not reflect future changes.