Amortization Schedule Calculator
Calculate your amortization schedule for mortgage and car loans — see principal vs interest each month, extra payment impact, and taxes and insurance context.
Use this amortization schedule calculator to break down every mortgage or auto loan payment into principal and interest, visualize how your balance declines over time, understand the impact of extra payments, and see how taxes and insurance fit into total housing cost.
Calculator Inputs
Original financed amount
Nominal annual rate
Amortization horizon
Live Results
Breakdown
Your Financial Snapshot
Amortization Calculator
Arogun Amortization Snapshot
Your estimated tax liability
$1,847.15
Visualize how each payment shifts from mostly interest to mostly principal.
What Amortization Actually Means
The Consumer Financial Protection Bureau defines amortization as paying off a loan with regular payments so the amount you owe goes down with each payment. Negative amortization — the opposite — occurs when payments are too low to cover interest, causing your balance to grow even as you pay.
This calculator shows positive amortization: each payment reduces your balance, and you can see exactly how much goes to interest versus principal each month.
The Amortization Formula
Interest portion = Remaining balance × Monthly rate
Principal portion = Monthly payment − Interest portion
New balance = Old balance − Principal portion
This cycle repeats every month. Because balance declines with each payment, the interest portion shrinks and the principal portion grows — automatically, without any change to your payment amount.
Visual 1: How Principal vs Interest Shifts Over a 30-Year Mortgage
Example: 00,000 mortgage at 6.25%, 30 years. Monthly payment ,847. Early payments are heavily weighted toward interest — principal share accelerates only as balance shrinks.
Amortization Calculator with Extra Payments
Extra payments applied to principal directly reduce the balance on which future interest is calculated. This creates a compounding benefit: each extra-payment dollar eliminates all the future interest that would have accrued on that dollar for the remaining loan life.
On a 30-year mortgage, an extra 00/month from the start can reduce the payoff timeline by roughly 7–8 years and save over 0,000 in total interest at typical 2024–2025 rates.
Visual 2: Balance Decline With vs Without Extra Payments
The green line reaches zero several years earlier. Each year of early payoff is years of interest eliminated — not just deferred.
Amortization Calculator with Taxes and Insurance (PITI)
This calculator computes principal and interest (P+I). The CFPB explains that total monthly mortgage cost is: Principal + Interest + Mortgage Insurance (if applicable) + Escrow (property taxes + homeowners insurance).
Many lenders collect property taxes and homeowners insurance through an escrow account, bundling them with the P+I payment. The CFPB's Loan Estimate form — which lenders must provide within three business days of application — shows all four components separately so borrowers can compare offers accurately.
To estimate your full PITI payment: use this calculator for P+I, then add your annual property tax ÷ 12 and annual insurance premium ÷ 12.
Auto Loan Amortization Calculator
Auto loan amortization follows the same formula but compresses into a much shorter term (typically 48–72 months). Because terms are shorter, the interest-to-principal shift happens faster — a typical auto loan at 7.52% (Federal Reserve G.19, March 2026) is already majority principal by month 25.
Auto loans also don't carry escrow for taxes and insurance, so your monthly payment is pure P+I.
Visual 3: Auto Loan Amortization — Interest Share Drops Faster
Example: 5,000 auto loan at 7.52% (Fed G.19, March 2026), 60 months. The interest share falls from 31% in month 1 to just 7% in month 49 — you own the car much faster than a mortgage.
How to Use This Calculator Effectively
- Use a 30-year term for the lowest monthly payment — but check total interest before committing.
- Compare 15-year vs 30-year on the same principal to see the interest cost difference.
- Add an extra payment amount mentally: even 00/month extra reduces total interest meaningfully on a large mortgage.
- For PITI: add your estimated property tax and insurance to the monthly P+I this calculator produces.
- Before refinancing, re-run the schedule with the new rate and remaining balance to verify whether total remaining interest actually decreases.
Frequently Asked Questions
What is an amortization calculator for a mortgage?
It breaks down each mortgage payment into principal (balance reduction) and interest (cost of borrowing). It shows how much of each payment goes where — and how your balance declines over the full loan term.
How does an amortization calculator for car loans differ?
The formula is identical, but the shorter term (typically 48–72 months) means the interest-to-principal shift happens much faster. Auto loans typically have no escrow component, so the payment is pure principal and interest.
How do extra payments affect amortization?
Extra payments reduce your outstanding principal directly. Because future interest is calculated on that lower balance, every extra dollar eliminates all the interest that would have accrued on it for the remaining loan life — often 10–20× the extra amount in saved interest over a full mortgage term.
What is the difference between an amortization calculator and Bankrate's version?
The underlying math is the same regardless of which tool you use — lenders and regulators use the same standard amortization formula. The only differences are interface features like extra-payment fields or PITI additions.
Does this calculator include taxes and insurance?
This calculator computes principal and interest only (P+I). The CFPB explains that your total mortgage payment also includes homeowners insurance and property taxes (held in escrow) plus mortgage insurance if applicable. To get your full PITI estimate, add those costs to the P+I result this calculator gives you.
Why is my balance so high after years of payments?
Early in a long-term mortgage, most of each payment covers interest rather than principal. Balance reduction accelerates only as the remaining balance — and thus the interest charge — shrinks. This is why the amortization curve is non-linear.
What is negative amortization?
The CFPB defines negative amortization as when payments are too small to cover interest, so the unpaid interest is added to the principal balance. This causes debt to grow even when you are making payments, which can leave you owing more than your home is worth.
When should I compare a 15-year vs 30-year schedule?
Run both in this calculator with the same principal and rate. The 15-year term doubles the monthly principal payment roughly, but total interest is typically 50–60% less than a 30-year term on the same balance. The right choice depends on your income stability and other financial priorities.
Sources
- Consumer Financial Protection Bureau. What is negative amortization? ConsumerFinance.gov
- Consumer Financial Protection Bureau. On a mortgage, what is the difference between my principal and interest payment and my total monthly payment? Defines PITI and escrow. ConsumerFinance.gov
- Consumer Financial Protection Bureau. What is a Loan Estimate? Explains the three-page form showing projected P+I, taxes, and insurance. ConsumerFinance.gov
- Consumer Financial Protection Bureau. Owning a Home — mortgage tools and resources. ConsumerFinance.gov
- Board of Governors of the Federal Reserve System. Consumer Credit — G.19 Statistical Release, March 2026. New car loan average APR 7.52% (60-month) at commercial banks. FederalReserve.gov
Methodology and Limits
This tool uses transparent formulas and user-provided inputs to generate planning estimates in your browser. Results are for educational use and should be validated before making legal, financial, tax, or medical decisions.
Key Assumptions
- Uses fixed-rate monthly amortization with no payment interruptions.
- Rounding conventions can create small differences versus lender statements.
- Escrowed taxes and insurance are outside principal-interest calculations.
Last methodology review: May 17, 2026.
Written by
Founder of Arogun. Software engineer with hands‑on experience in taxes, budgeting, and financial planning. Passionate about transparent, accurate financial tools anyone can trust.
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