Finance

Amortization Calculator

See how a fixed-payment loan breaks into principal and interest over time, including the remaining balance after a chosen number of payments.

Last reviewed: April 30, 2026Free toolMethodology

Amortization Calculator

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These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

Amortization helps borrowers understand why interest dominates early payments and how balance reduction accelerates later in the schedule.

When to use

  • Estimating the balance after a few years of payments
  • Checking interest-heavy early periods
  • Comparing refinance timing scenarios

Inputs & Outputs

Inputs

  • Loan amount, annual rate, and term define the fixed-payment schedule.
  • Payments made tells the calculator how far into the schedule you want to inspect the balance.

Outputs

  • Monthly payment matches the standard amortized installment.
  • Remaining balance shows what principal is left after the chosen number of payments.
  • Interest paid to date shows how much of the early schedule went to financing cost.

Balance-after-payments method

Use the fixed monthly payment from the amortization formula, then apply the remaining-balance formula after a given number of payments.

Remaining balance = P x (1 + r)^k - payment x (((1 + r)^k - 1) / r)

Worked example

1

Five-year balance check

A 300,000 loan at 5.75% runs for 30 years and the borrower wants the balance after 60 payments.

Inputs

  • Loan amount: 300,000
  • Rate: 5.75%
  • Term: 30 years
  • Payments made: 60

Steps

  • Calculate the monthly payment
  • Apply the remaining balance formula after 60 payments

Result

  • The calculator estimates both the balance remaining and how much interest has been paid in the first five years.

Edge cases & caveats

  • This version assumes a fixed rate for the full term.
  • Extra principal payments are not included in the estimate.

Frequently Asked Questions

Why does the balance fall slowly at first?

Because the outstanding principal is largest at the beginning, so interest consumes more of each payment early on.

Can I use this to estimate refinance timing?

Yes. It is useful for approximating the balance you might refinance after a certain number of payments.

Keep going

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