Fill in the loan details and select the amortization method. The tool computes year by year: opening balance, interest, principal, payment, and remaining balance. Everything runs locally in your browser.
About this loan amortization calculator
A loan can look simple on paper—borrow an amount, repay it over time—but the real cost is often hidden in the interest schedule. This free loan amortization calculator helps you build a clear yearly repayment table so you can understand how your balance changes over time. Enter your loan amount, annual interest rate, and duration, then choose an amortization method to generate a schedule showing the key numbers for each year: opening balance, interest paid, principal repaid, total payment, and closing balance.
This tool is useful when you want to compare scenarios before taking a mortgage, a personal loan, or any long-term financing. For example, you can test how a small change in interest rate affects total interest paid, or how choosing a shorter duration increases yearly payments but reduces the overall cost. Seeing the amortization table can also help you plan savings, anticipate cash flow, or compare offers from different lenders in a more objective way.
The calculator supports two common repayment models. With linear amortization (also known as constant principal), you repay the same amount of principal each year. Because the outstanding balance decreases faster, interest typically drops more quickly, and the total payment usually becomes smaller over time. With annuity amortization (constant payment), the yearly payment stays stable (when the rate is fixed), meaning you pay more interest at the beginning and progressively repay more principal later. Both approaches are valid, and the “best” one depends on your budget strategy and financial goals.
Everything is computed locally in your browser. This page does not upload your data and does not require an account. Keep in mind that the schedule is simplified to a yearly view and does not include insurance, fees, taxes, or bank-specific rounding rules. Still, it’s an excellent way to estimate repayments, understand interest mechanics, and make smarter decisions when evaluating a loan.
Tip: try generating both “linear” and “annuity” schedules for the same loan to quickly see how interest and principal shift over time.
What is this loan amortization calculator used for?
This loan amortization calculator helps you understand how a loan is repaid year by year. It shows how each payment is split between interest and principal, and how the remaining balance decreases over time.
Who is this tool useful for?
- Borrowers comparing mortgage or personal loan offers
- Home buyers planning long-term financing
- Entrepreneurs estimating business loan repayments
- Students learning how loan amortization works
Concrete examples
- Comparing a 20-year vs 25-year loan to see the impact on total interest
- Understanding why early payments contain more interest than principal
- Choosing between linear and annuity repayment methods
Common mistakes to avoid
- ❌ Confusing interest rate with total loan cost
- ❌ Ignoring how loan duration increases total interest paid
- ❌ Forgetting that fees and insurance are not included
This calculator provides a clear estimate, but results depend on the accuracy of the values entered and the chosen amortization method.
Limits and possible alternatives
This tool generates a simplified yearly schedule. It does not account for monthly payments, variable interest rates, insurance costs, taxes, or lender-specific rounding rules.
- Official amortization tables provided by banks
- Professional financial planning software
Educational summary
In summary, this loan amortization calculator lets you visualize how a loan is repaid over time. By comparing linear and annuity schedules, you gain a clearer understanding of interest mechanics and can make more informed borrowing decisions.