Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning.
Use this free loan amortization calculator to determine the impact of different loan terms, interest rates, and loan amounts.
Free Loan Amortization Calculator Excel
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Loan Amortization Formula
Q = (F × P × (1 + P)^V) / ((1 + P)^V – 1)
Formula Source: Investopedia
Variables
- F: Loan amount (the principal).
- P: Interest rate per period.
- V: Total number of periods (months or years).
- Q: Monthly payment.
Related Calculators
What is Loan Amortization?
Loan amortization refers to the process of paying off a loan through scheduled, periodic payments that cover both interest and principal over the term of the loan. Understanding amortization helps you determine how much of each payment goes toward the principal balance versus interest.
How to Calculate Loan Amortization (Example)
- Step 1: Enter the loan amount, interest rate, loan term, and desired monthly payment.
- Step 2: Click “Calculate” to get the amortization schedule and results.
Frequently Asked Questions (FAQ)
What is amortization? Amortization is the process of spreading out a loan’s interest and principal payments over time.
Can I calculate my monthly payment? Yes, simply enter your loan details and use the calculator.