How it Works
What is Loan Amortization Schedule Generator?
Step-by-Step Guide
- Input Loan Details – Enter the total loan amount, annual interest rate, and term length.
- Review Monthly Payment – Confirm the standard monthly obligation calculated.
- Analyze Schedule – Examine the year-by-year or month-by-month breakdown.
- Check Total Interest – See the total cost of borrowing over the full term.
Example
Input: $20,000 Loan, 5% Rate, 5 Years
Result: Total Interest: $2,645
FAQ
Why is the interest so high at the beginning?
Interest is calculated on the remaining balance. Since the balance is highest at the start, the interest charge is also highest.
Does this apply to credit cards?
No. Credit cards use revolving credit. Amortization applies to installment loans like mortgages, auto loans, and personal loans.
Can I print this schedule?
Yes, this tool provides a clear breakdown perfect for printing or saving as a PDF for your records.
What is 'Negative Amortization'?
This occurs if payments are too low to cover the interest due, causing the loan balance to increase rather than decrease. Standard loans do not do this.
How do extra payments affect the schedule?
Extra payments reduce the principal immediately, skipping lines on the amortization schedule and bringing the payoff date closer.
Conclusion
Seeing the total interest cost can be a shock—often amounting to 50% or more of the original loan value on long-term debts. An amortization schedule is a powerful motivator for making extra principal payments, as it visually demonstrates how prepayment accelerates the equity crossover point.