Online calculator
Amortization Calculator
Calculate monthly payment, remaining balance, interest cost and estimated payoff time using interest rate, repayment rate and optional extra repayments.
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What does this calculator do?
Use this amortization calculator to estimate how a loan or mortgage develops over time. Based on loan amount, interest rate, initial repayment rate and optional annual extra repayments, it shows monthly payment, remaining balance after a selected period, interest paid and an estimated overall payoff time.
Formula
Annual annuity = Loan amount × (interest rate + repayment rate) Monthly payment = Annual annuity ÷ 12 Monthly interest part = Remaining balance × monthly interest rate Monthly principal part = Monthly payment − interest part New remaining balance = Previous remaining balance − principal part − extra repayment The estimated payoff time is derived by repeating this balance update until the loan is fully repaid.
Example
Example: A loan of €300,000 with 3.8% interest, an initial repayment rate of 2.0% and a 15-year analysis period results in a fixed monthly payment. With each payment, the remaining balance decreases, which slowly reduces the interest share and increases the principal share. Annual extra repayments can reduce the balance even faster.
What does this amortization calculator show?
The calculator estimates monthly payment, annual payment, remaining balance after the selected period, interest paid so far, principal repaid and the estimated total payoff time. It is especially useful for annuity-style loans and mortgages.
How is it different from the loan calculator?
The loan calculator is great for standard installment loans with a fixed term. The amortization calculator is particularly useful for mortgages and financing scenarios where initial repayment rate, remaining balance after several years and extra repayments are key decision factors.
Why does the repayment rate matter so much?
A higher repayment rate usually increases the monthly payment at first, but it often lowers the overall payoff time and total interest cost significantly. Over long financing periods, that difference can be substantial.
What is the benefit of extra repayments?
Annual extra repayments reduce the remaining balance directly. That often lowers future interest cost and can shorten the loan term noticeably. Even relatively modest extra repayments can make a meaningful long-term difference.
How to use amortization results for better planning
Amortization results are most useful when you compare payment, remaining balance and extra repayments together. Especially for mortgages, small changes in interest rate, repayment rate or extra payments can materially change the long-term outcome.
Frequently asked questions
What is an amortization calculator?
An amortization calculator shows how a loan changes over time. It estimates payment structure, remaining balance, interest cost and the impact of extra repayments.
What is the difference between interest and principal repayment?
Interest is the cost of borrowing the money. Principal repayment is the part of your payment that reduces the actual loan balance.
What happens if the repayment rate is higher?
A higher repayment rate usually means a higher monthly payment, but it often reduces the remaining balance faster and lowers long-term interest cost.
Do extra repayments help?
In many cases yes. Extra repayments reduce the remaining balance directly and can lower both total interest cost and overall payoff time.
Are the results binding?
No. The calculator is for general guidance only. Actual loan terms, fixed-rate periods, fees and contract details may differ.
Does this replace professional advice?
No. The tool is useful for first comparisons and scenarios, but major financing decisions should be reviewed carefully and, if necessary, discussed with an independent professional.