Amortization Calculator
Overview
Calculate your loan amortization schedule with extra monthly, yearly, and one-time payments. See how much interest and time you save.
The Amortization Calculator helps you understand how extra monthly payments, annual lump sums, and one-time payments reduce your loan balance faster. See your updated payoff date, total interest paid, interest saved, and time saved compared to a standard repayment schedule.
How to use
Calculate your amortization schedule and see the impact of extra payments.
- Enter loan details: Input the loan amount, annual interest rate, and loan term in years.
- Set the start date: Choose the month and year when your first payment is due.
- Add extra recurring payments: Enter any extra amount you plan to pay each month or each year to pay down principal faster.
- Add one-time payments (optional): Use the repeating rows to enter lump-sum payments and the month number in which they will be applied.
- Review results: See your payoff date, interest saved, and time saved compared to the original schedule.
FAQs
- How does an extra monthly payment reduce my loan?
- Any extra amount paid above your regular monthly payment goes directly toward principal, which reduces the balance on which interest is charged. This accelerates payoff and saves interest.
- What is a one-time extra payment?
- A one-time payment is a lump sum applied to the loan balance in a specific month (e.g., month 12 for a year-end bonus). Enter the month number and amount in the one-time payments section.
- How is the payoff date calculated?
- The calculator simulates month-by-month payments including all extra amounts and determines the month in which the balance reaches zero, then converts that count into a calendar date.
- Does an extra yearly payment get added in a specific month?
- Yes. The extra yearly payment is applied every 12th month of the loan (i.e., each December of the loan year). You can also model a specific month using the one-time payments feature.