An amortization schedule shows how a fixed-payment loan is repaid over time: every instalment covers the interest due on the remaining balance first, and whatever is left reduces the principal, so the interest share shrinks and the principal share grows month by month. Enter the amount, rate and term to see the payment and the full schedule; add an extra payment to see how much faster the balance falls.
The same maths applies to amortising an intangible asset over its useful life: the schedule shows how the balance declines to zero at a steady payment.
Loan and EMI Calculator
A fixed-rate loan is repaid in equal monthly instalments, called EMIs in many markets. Each payment covers that month's interest first and puts the remainder toward the balance, so early payments are mostly interest and late payments are mostly principal. The loan calculator shows the monthly payment, the total interest over the life of the loan, the payoff date and a year-by-year schedule; switch to the monthly view to see every payment.
Borrowing $25,000 over five years at 7.5% costs about $501 a month and roughly $5,057 in interest. Add an extra $100 a month and the calculator recomputes the schedule: the loan is paid off about eleven months sooner and the interest bill falls by around $1,000. The figures assume monthly compounding and no fees; your lender's quote may differ slightly because of rounding, fees or a different day-count convention.
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Frequently Asked Questions
What is amortization?
Paying a debt down through regular instalments that cover both interest and principal, so the balance reaches zero at the end of the term. For intangible assets it means spreading the cost over the years of use.
Why does the interest portion fall each month?
Interest is charged on the outstanding balance, which is largest at the start. As each payment reduces the principal, the interest due the next month is smaller and more of the fixed payment goes to principal.
Can I see the effect of extra payments?
Yes. Enter an extra monthly amount and the schedule shows the shorter term and the interest saved.
