Use our Amortization Calculator to estimate your periodic payment, total interest, and payoff timeline. See how changing your payment frequency or adding extra payments can shorten your term and save you money.
What is an Amortization Calculator?
An amortization calculator helps you break down a loan into regular payments over time. Each payment includes interest and principal, with the interest portion shrinking and the principal portion growing as you move through the schedule. Whether you are financing a home, a car, or consolidating debt, an amortization calculator provides clarity on how much you will pay and for how long.
By entering your loan amount, annual interest rate, and term, you can quickly calculate the periodic payment. Selecting a payment frequency such as monthly, biweekly, or weekly changes the number of payments per year and can alter your payoff timeline. If you add an extra amount to each payment, you can see how quickly the loan could be paid off and how much interest you might save.
How to use the Amortization Calculator
- Enter the loan amount (principal) you plan to borrow.
- Type in the annual interest rate as a percentage (for example, 6.5 for 6.5%).
- Provide the loan term in years. You can use decimals for partial years.
- Choose your payment frequency: monthly, biweekly, or weekly.
- Optionally, add an extra payment per period to accelerate payoff.
- Click Calculate to see your payment, total interest, number of payments, and estimated payoff time.
Why payment frequency matters
Payment frequency determines how many times per year you pay and the periodic interest rate used in calculations. Typical options include:
- Monthly: 12 payments per year.
- Biweekly: 26 payments per year.
- Weekly: 52 payments per year.
More frequent payments can reduce the balance sooner and may lower total interest paid over the life of the loan. While the nominal interest rate stays the same, applying payments more often means interest accrues on a smaller balance between payments.
How extra payments reduce interest
Extra payments go directly toward principal after covering any interest due for the period. Reducing the principal faster lowers interest charges in subsequent periods, creating a snowball effect that shortens the term. Even a small extra amount per period can make a meaningful difference over time.
What this calculator shows
After you submit your details, the Amortization Calculator estimates:
- Your scheduled payment per period based on loan amount, rate, and term.
- The total payment per period if you include an extra amount.
- The approximate number of payments required to pay off the loan.
- Your estimated payoff time in years and months.
- Total interest paid and potential interest savings compared to making no extra payments.
Assumptions and limitations
This tool uses a standard amortization formula and assumes a fixed interest rate and on-time payments. Results are estimates and may differ from your lender’s figures due to rounding rules, fees, escrow items (such as taxes and insurance), or different compounding conventions. For precise terms, consult your loan documents or lender.
Tips to save on your loan
- Round up your payment or add a regular extra amount each period.
- Switch to a more frequent payment schedule if your lender allows it.
- Refinance to a lower interest rate when market conditions and your credit qualify.
- Make occasional lump-sum payments when possible, such as bonuses or tax refunds.
Use the Amortization Calculator to test different scenarios and find a plan that fits your budget and goals. Seeing the math behind each option can help you make confident, informed decisions about your borrowing.