Loan Amortization Calculator - Create Payment Schedule

The amortization schedule details each monthly payment, showing how much goes to interest and how much reduces the principal. At the start of the loan, most of the payment goes to interest, then gradually shifts toward principal over time.

1. 1

   Step 1

   Specify loan amount, interest rate, and term

2. 2

   Step 2

   Calculate the fixed monthly payment

3. 3

   Step 3: For each month

   calculate interest on remaining balance

4. 4

   Step 4

   Subtract interest from payment to get principal portion

5. 5

   Step 5

   Subtract principal paid from balance to get new balance

• 1

  Review the amortization schedule before signing the loan

• 2

  Notice how the interest-to-principal ratio changes over time

• 3

  Use the schedule to plan extra payments strategically

• 4

  Compare loans with same payment but different terms

• 5

  Keep a copy of the amortization schedule to track your loan

• Expecting Equal Principal Reduction

• Ignoring Early Interest Impact

• Not Updating the Schedule

• Confusing Numbers