Amortized Loan Calculator
Calculate your loan payments and view the full amortization schedule.
Results:
Payment Every Month
$0.00
Total of 0 Payments
$0.00
Total Interest
$0.00
Understanding Amortized Loans
An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the loan's principal amount and the interest accrued. The term "amortization" refers to the process of paying off debt over time in installments.
Key Components of an Amortized Loan
- Principal: The original amount of money borrowed.
- Interest: The cost of borrowing the principal, expressed as a percentage.
- Loan Term: The duration over which the loan will be repaid.
- Monthly Payment: A fixed payment amount made each period (typically monthly) that covers both principal and interest.
How the Calculation Works
Early in the loan term, a larger portion of each payment goes toward paying off the interest. As the loan matures, a greater portion of each payment is applied to the principal balance. This is demonstrated in the amortization table, which shows how each payment is broken down between principal and interest.