Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning, specializing in loan amortization and investment analysis.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning, specializing in loan amortization and investment analysis.
Enter the necessary values to calculate your loan amortization and total cost. This tool helps you understand how different loan terms and interest rates can affect your monthly payment and total interest paid over the life of the loan.
Loan Amortization Calculator
Not calculated yet.
Loan Amortization Formula
Monthly Payment = [P × (r × (1 + r)^n) / ((1 + r)^n – 1)]
Formula Source: Investopedia
Related Calculators
What is Loan Amortization?
Loan amortization refers to the process of paying off a loan in regular installments over time. It involves making monthly payments of both principal and interest, with each payment reducing the outstanding loan balance. Over time, the portion of the payment applied to the interest decreases while the portion applied to the principal increases.
How to Calculate Loan Amortization (Example)
- Step 1: Enter your loan amount, interest rate, and loan term.
- Step 2: Click “Calculate” to see your monthly payment and total cost of the loan.