Free Amortization Calculator
Four loan repayment tools in one: full amortization schedule with payment table, equal principal payments method, extra payment savings calculator, and two-loan comparison. See exactly how every dollar pays off your loan.
Generate a complete monthly payment schedule showing principal, interest, and remaining balance for every payment.
| # | Payment | Principal | Interest | Balance |
|---|
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Equal Principal Payments: fixed principal per period, declining total payment. Pays off loan faster and reduces total interest vs standard amortization.
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|---|
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How much interest and time does an extra monthly payment save? Every extra dollar goes directly to principal.
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Compare two loan options side by side — different amounts, rates, or terms. See exact monthly payment and total cost difference.
🔵 Loan A
🟢 Loan B
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📚 Sources & Methodology
All calculations use standard mortgage and loan mathematics verified against:
- CFPB Mortgage Disclosure Standards (Regulation Z) — amortization table format and APR disclosure requirements
- Federal Reserve Regulation Z (Truth in Lending Act) — payment schedule standards and APR calculation
- Standard Amortization Formula — PMT = P[r(1+r)^n]/[(1+r)^n-1] per ANSI financial calculation standards
- Equal Principal Payments Method — widely used in commercial lending and international mortgage markets
- Fannie Mae Selling Guide — standard amortization requirements for conforming loans
Complete Amortization Calculator Guide
What is an Amortization Schedule?
An amortization schedule is a complete table of loan payments showing how each payment is divided between principal and interest, and what balance remains after each payment. The total monthly payment stays constant throughout the loan, but the composition shifts dramatically — early payments are mostly interest, late payments are mostly principal.
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where: P=principal, r=monthly rate (APR/12), n=total payments
Example: $200,000 at 6% for 30 years
r=0.005, n=360 → Payment=$1,199.10/month
Total paid=$431,676 | Total interest=$231,676
Standard vs Equal Principal Payments
Standard amortization keeps the monthly payment constant. Equal principal payments (EPP) keep the principal portion constant — each month you repay the same amount of principal, so total payment declines as the interest portion falls. EPP results in less total interest paid because you reduce the principal faster in early periods.
| Method | Payment 1 | Payment 180 | Final Payment | Total Interest |
|---|---|---|---|---|
| Standard ($200K, 6%, 30yr) | $1,199 | $1,199 | $1,199 | $231,676 |
| Equal Principal (same) | $1,556 | $1,195 | $558 | ~$180,200 |
How Extra Payments Save Money
Extra principal payments reduce the outstanding balance, which reduces future interest charges. The savings are larger earlier in the loan because the principal is higher. A $200/month extra payment on a $300,000 30-year mortgage at 6.5% typically saves over $100,000 in total interest and shortens the loan by approximately 7-9 years.
15-Year vs 30-Year Mortgage
The most common loan comparison. A 15-year mortgage typically has a rate 0.5-0.75% lower than a 30-year and pays off in half the time, but monthly payments are 40-50% higher. For a $300,000 loan: 30-year at 6.5% = $1,896/month, total interest $382,000. 15-year at 5.75% = $2,490/month, total interest $148,000. Savings: $234,000 in interest.
| Scenario | Rate | Monthly | Total Interest | Interest Saved |
|---|---|---|---|---|
| $300K 30-year | 6.5% | $1,896 | $382,160 | baseline |
| $300K 15-year | 5.75% | $2,491 | $148,380 | $233,780 |
| $300K 30yr +$200/mo extra | 6.5% | $2,096 | ~$280,000 | ~$102,000 |