Loan Amortization Schedule Calculator
Calculate your loan payments and visualize your complete amortization schedule
Regular Payment Amount
Total Interest Paid
Total Cost of Loan
Total Payments
Amortization Schedule
| # | Date | Starting Balance | Payment | Interest | Principal | Ending Balance |
|---|
The Financial Formula Used: How We Calculate Loan Payments
The Online Calculator Plus Loan Amortization Schedule tool relies on the foundational mortgage formula to determine the fixed payment amount and then applies an iterative calculation for the schedule.
M = P × [i(1 + i)^N] / [(1 + i)^N - 1]
P = Principal (Loan Amount)
i = Periodic Interest Rate (Annual Rate / Payment Frequency)
N = Total Number of Payments (Years × Payment Frequency)
M = Fixed Payment Amount
For Each Payment Period:
- Interest Paid: Starting Balance × Periodic Rate
- Principal Paid: Payment Amount - Interest Paid + Extra Payment
- Ending Balance: Starting Balance - Principal Paid
What is an Amortization Schedule and Why Do I Need One?
An amortization schedule is a complete table showing every single payment made on a loan—whether it's a mortgage, an auto loan, or a personal loan. It breaks down exactly how much of each payment goes toward Interest and how much goes toward Principal.
Understanding your amortization schedule is crucial for global financial planning, from London to Toronto, as it reveals the true cost and structure of your debt.
The Front-Loaded Nature of Interest
The schedule clearly shows the most important truth about loans: Payments are heavily front-loaded with interest. In the early years, nearly all of your payment covers the interest, and very little goes toward reducing the principal. This is why it takes so long to build equity!
Example: On a $250,000 mortgage at 6.5% over 30 years, your first payment of $1,580.17 includes $1,354.17 in interest and only $226.00 in principal. That's 85.7% going to interest!
Our Loan Amortization Schedule Calculator makes this transparent, allowing users in the USA, UK, Canada, and Europe to see exactly how quickly they can pay off their debt.
The Power of the Extra Payment
The calculator's Optional Extra Payment feature is the most powerful planning tool.
- By simply entering a fixed extra amount (e.g., $100) per month, the amortization schedule immediately shows how many months and years are shaved off the loan term.
- More importantly, it calculates the thousands of dollars in interest that are saved because you are reducing the principal balance earlier.
Real Impact: Adding just $100 extra per month to a $250,000 mortgage at 6.5% can save you over $60,000 in interest and reduce your loan term by nearly 7 years!
Key Terms Explained (LSI Keywords)
- Principal: The original amount of money borrowed.
- Interest: The cost of borrowing money, calculated as a percentage of the remaining balance.
- Term: The length of time required to pay the loan back.
- Amortization: The process of paying off a debt over time through regular payments.
- Equity: The portion of your property or asset that you actually own (Principal Paid).
- Payment Frequency: How often you make payments (monthly, bi-weekly, annually).
Why Use Our Calculator?
The OCP Loan Amortization Schedule Calculator provides:
- Complete Transparency: See every single payment broken down by interest and principal
- Extra Payment Analysis: Instantly visualize the savings from making additional payments
- Multiple Payment Frequencies: Compare monthly, bi-weekly, and annual payment schedules
- Date-Specific Scheduling: Know exactly when each payment is due
- Total Cost Visibility: Understand the true cost of your loan including all interest
Use the OCP Loan Amortization Schedule Calculator today to visualize your debt and create a powerful, interest-saving payoff strategy.