Amortization Calculator

What is the Amortization Calculator?

An amortization calculator breaks down your loan payments into exactly how much goes toward interest versus how much actually reduces what you owe. Most people are surprised to find out that for the first several years of a 30-year mortgage, the majority of each payment is interest, not principal. If you have a home loan, car loan, or any fixed installment debt, this tool shows you a full payment schedule, month by month, so you know exactly where your money goes. CalciHub's version also lets you see how much total interest you'll pay over the life of the loan, which is often a number worth knowing.

How Does It Work?

Each monthly payment is calculated so the loan is fully paid off by the end of the term. The standard formula is:

M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ − 1]

M = Fixed monthly payment

P = Principal loan amount

r = Monthly interest rate (annual rate ÷ 12)

n = Total number of monthly payments (loan term in years × 12)

How to Use CalciHub's Amortization Calculator

1. Enter the loan amount (the total you borrowed, not the purchase price).

2. Input the annual interest rate.

3. Set the loan term in years.

4. Click Calculate to see your monthly payment, total interest paid, and full amortization schedule.

Tip: Scroll through the payment table to find the crossover point, the month when your principal payment finally exceeds your interest payment. For a 30-year mortgage, that point often doesn't arrive until year 18 or 19.

A Quick Example

John bought a home in Austin and took out a $320,000 mortgage at a 6.5% annual interest rate with a 30-year term.

Loan amount: $320,000

Interest rate: 6.5%

Loan term: 30 years

Monthly payment: $2,023

Total paid over 30 years: $728,280

Total interest paid: $408,280

That's more than the original loan amount paid in interest alone. Knowing this, John decided to add $200 to each monthly payment, which cuts about 5 years off the loan and saves roughly $68,000 in interest.

Frequently Asked Questions