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Amortization Calculator

Use this amortization calculator to compare payment, payoff, or borrowing scenarios for amortization.

Primary answer
Monthly payment
Inputs to verify
Loan amount, Annual rate, and Loan term
Use type
Use as an estimate that depends on assumptions.
Keyword intent
amortization calculator

Calculator

Amortization Calculator

Calculates monthly payment from loan amount, annual rate, loan term. Defaults are filled in so you can review a working example before changing inputs.

USD

Principal balance before taxes, fees, insurance, escrow, or extra payments.

%

Use 7 for 7%. The calculator divides this by 12 for the monthly periodic rate.

months

Whole number of monthly end-of-period payments.

Result

Result reflects the current submitted inputs.

  • Risk B
  • Reviewed 2026-05-26
  • 3 sources
Monthly payment665.3 USD
Total payment239,508.9 USD
Total interest139,508.9 USD
First payment interest583.33 USD
First payment principal81.97 USD
Balance after first payment99,918.03 USD
Final scheduled payment665.3 USD
Final payment interest3.86 USD
Final payment principal661.44 USD
Final balance0 USD
Number of payments360

Breakdown

Monthly periodic rate
0.5833%
Number of payments
360
First payment interest
583.33 USD
First payment principal
81.97 USD
  • The loan is fully amortizing with fixed monthly payments.
  • Payments are due at the end of each monthly period.
  • Annual rate input is treated as a nominal annual APR/rate divided by 12.
  • Schedule rows are generated from unrounded balances and rounded only for display.
  • Taxes, fees, insurance, escrow, extra payments, late fees, prepayment penalties, and exact date-based interest accrual are excluded.
  • This is an educational estimate, not financial advice, a lender schedule, payoff quote, or a Truth in Lending disclosure.

Accuracy notes

Risk level
B
Reviewed
2026-05-26
Sources
3
Primary result
Monthly payment

Formula logic is kept in a pure calculator module with fixtures, source notes, and page-visible assumptions.

Categories

What the result means

Monthly payment answers the page's main amortization question. Fixed monthly principal-and-interest payment. Read the payment or payoff number first, then compare interest, balance, and timing outputs before changing a loan decision. Use total payment, total interest, and first payment interest to explain why monthly payment moved when an input changed. Run at least one conservative and one optimistic scenario before comparing with a real quote or statement.

Monthly paymentFixed monthly principal-and-interest payment.
Total paymentUnrounded monthly payment multiplied by the number of payments.
Total interestTotal payment minus the loan amount.
First payment interestInterest portion of the first scheduled payment.

Use the result this way

  1. Start with Monthly payment, then use supporting outputs only to explain the primary answer.
  2. Verify loan amount, annual rate, and loan term before copying the result.
  3. Keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise.
  4. Run at least one conservative and one optimistic scenario before comparing with a real quote or statement.

User job

How to use this calculator

Use Amortization Calculator when you need monthly payment, then use total payment and total interest to check the context for planning conversations, quote comparisons, payment checks, and scenario review.

Best for

  • Comparing one financial scenario with another
  • Preparing questions for a lender, advisor, or statement review
  • Reviewing a default example before entering your own loan amount and annual rate.

Check before relying

  • Verify rates, fees, timing, taxes, and local rules against official documents before acting.
  • The loan is fully amortizing with fixed monthly payments.
  • Payments are due at the end of each monthly period.
  • Source context: Mississippi State University Extension Service, reviewed 2026-05-26.

Next useful step

  • Mortgage Amortization CalculatorUse next when the borrowing comparison needs mortgage amortization inputs such as loan amount and annual interest rate.
  • Home Equity Loan CalculatorUse next when the borrowing comparison needs home equity loan inputs such as home value and current mortgage balance.
  • Auto Loan CalculatorUse next when the borrowing comparison needs auto loan inputs such as vehicle price and down payment.

Formula

Amortization uses a fixed monthly payment from P * r / (1 - (1 + r)^(-n)); each period's interest equals beginning balance times monthly rate, and principal equals payment minus interest. Key assumptions: The loan is fully amortizing with fixed monthly payments. Payments are due at the end of each monthly period. Annual rate input is treated as a nominal annual APR/rate divided by 12.

  • Amortization uses a fixed monthly payment from P * r / (1 - (1 + r)^(-n)); each period's interest equals beginning balance times monthly rate, and principal equals payment minus interest.
  • The loan is fully amortizing with fixed monthly payments.
  • Payments are due at the end of each monthly period.
  • Primary source context: Mississippi State University Extension Service.

Inputs

Enter loan amount, annual rate, and loan term for planning conversations, scenario checks, and lender or statement comparison. Before calculating, keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise. Loan amount: Principal balance before taxes, fees, insurance, escrow, or extra payments. Annual rate: Use 7 for 7%. The calculator divides this by 12 for the monthly periodic rate. Loan term: Whole number of monthly end-of-period payments.

Loan amountPrincipal balance before taxes, fees, insurance, escrow, or extra payments.
Annual rateUse 7 for 7%. The calculator divides this by 12 for the monthly periodic rate.
Loan termWhole number of monthly end-of-period payments.

Example

Using the default inputs, Amortization Calculator returns monthly payment of 665.3 USD. Adjust loan amount, annual rate, and loan term to match your own scenario.

FAQ

How is monthly payment calculated here?

Amortization uses a fixed monthly payment from P * r / (1 - (1 + r)^(-n)); each period's interest equals beginning balance times monthly rate, and principal equals payment minus interest. The first assumption to check is: The loan is fully amortizing with fixed monthly payments.

What does Monthly payment mean for amortization?

Read the payment or payoff number first, then compare interest, balance, and timing outputs before changing a loan decision. Secondary values such as total payment, total interest, and first payment interest are there to explain the primary answer, not to replace it.

What should I enter for Loan amount?

Principal balance before taxes, fees, insurance, escrow, or extra payments. Use USD for this field. Keep units consistent with the labels shown in the form, stay within the documented minimum and maximum ranges, and enter percentages as whole percents, such as 6.5 for 6.5%, unless a field says otherwise.

How does Annual rate change monthly payment?

Use 7 for 7%. The calculator divides this by 12 for the monthly periodic rate. Changing it can alter monthly payment because the formula uses the submitted inputs together. Also compare APR period, compounding, fees, payment timing, taxes, insurance, and extra-payment assumptions.

Why does the amortization example show 665.3 USD for monthly payment?

The default inputs produce 665.3 USD for monthly payment. Treat that as a format and scale check, then replace every default value with your own inputs.

What should I compare before using the amortization payment result?

Compare the rate period, payment timing, fees, taxes, escrow items, payoff assumptions, and the actual quote or statement that governs the decision.

Sources

Last reviewed: 2026-05-26

  • Reviewed 2026-05-26
    Paying Off Your Loans: Loan AmortizationMississippi State University Extension Service. Fixed payment formula, interest and principal split, ending balance recurrence, and published amortization schedule examples.
    Scope
    Educational finance reference for loan amortization schedules and fixed-payment formulas.
    Supports
    Fixed payment formula, interest and principal split, ending balance recurrence, and published amortization schedule examples.
  • Reviewed 2026-05-26
    PMT functionMicrosoft Support. Constant-payment loan behavior, monthly rate consistency, end-of-period payment timing, and exclusion of taxes/reserves/fees.
    Scope
    Financial function documentation for fixed payments and constant interest rate loans.
    Supports
    Constant-payment loan behavior, monthly rate consistency, end-of-period payment timing, and exclusion of taxes/reserves/fees.
  • Reviewed 2026-05-26
    What is the difference between a loan interest rate and the APR?Consumer Financial Protection Bureau. APR assumption notes, fee exclusion warning, and page-visible finance disclaimer.
    Scope
    Consumer finance guidance for APR versus interest rate.
    Supports
    APR assumption notes, fee exclusion warning, and page-visible finance disclaimer.

Disclaimer

This borrowing calculator is for educational payment and payoff estimates only. It is not a lender quote, credit approval, legal disclosure, tax advice, or a substitute for reviewing contracts, fees, escrow items, and local rules.