Free loans & equipment tool
Loan Amortization Calculator and Payment Schedule
A loan amortization calculator takes the loan amount, interest rate and term and returns the monthly payment plus a schedule showing how each payment splits between interest and principal. A $250,000 loan at 7.5% over 10 years has a payment of $2,967.54, with $106,105 of total interest. Enter your numbers below, add extra payments to see the payoff date move, and switch the schedule between monthly and yearly views.
Prepared by Prospyr · Reviewed October 3, 2026 · Free, no sign-up, runs in your browser
Loan amortization calculator
Enter the loan, add extra payments if you want, and the schedule updates as you type. Nothing leaves your browser.
Optional. Any date in the month of the first payment. Blank uses next month.
Origination or guarantee fees. Used only to estimate the APR below.
Extra payments (optional)
Monthly payment (principal + interest)
$2,967.54
Total interest
$106,105
Total paid
$356,105
Payoff
Oct 2036
10 yr
Interest share
29.8%
of everything you pay
An estimate for planning. Your lender's payment can differ by a few dollars (day-count method, odd first period) and does not include insurance, escrow or other charges.
Amortization schedule
Amortization schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 20262 pmts | $5,935 | $2,819 | $3,116 | $247,181 |
| 202712 pmts | $35,611 | $17,671 | $17,939 | $229,510 |
| 202812 pmts | $35,611 | $19,043 | $16,567 | $210,467 |
| 202912 pmts | $35,611 | $20,521 | $15,089 | $189,945 |
| 203012 pmts | $35,611 | $22,115 | $13,496 | $167,831 |
| 203112 pmts | $35,611 | $23,831 | $11,779 | $144,000 |
| 203212 pmts | $35,611 | $25,681 | $9,929 | $118,318 |
| 203312 pmts | $35,611 | $27,675 | $7,935 | $90,643 |
| 203412 pmts | $35,611 | $29,824 | $5,787 | $60,819 |
| 203512 pmts | $35,611 | $32,139 | $3,472 | $28,680 |
| 203610 pmts | $29,675 | $28,680 | $995 | $0 |
| Total | $356,105 | $250,000 | $106,105 | – |
Loan payment formula and how amortization works
A fixed-rate loan has one level payment. The formula that produces it is:
payment = P × r ÷ (1 − (1 + r)−n), where P is the amount borrowed, r is the annual rate divided by 12, and n is the number of monthly payments.
Each month the lender charges interest on the balance (balance × r). Whatever is left of the payment reduces principal. As the balance falls, interest falls, and the principal share grows. That process is amortization. CFPB's explainer lays out the same pattern: mostly interest early, mostly principal near the end.
With an extra payment, the extra goes straight to principal. The next month's interest is calculated on a smaller balance, so the effect compounds.
Worked example: a $250,000, 10-year practice loan
A practice borrows $250,000 at 7.5% for 10 years (120 payments). The monthly rate is 7.5% ÷ 12 = 0.625%.
| Step | Math | Result |
|---|---|---|
| Monthly payment | 250,000 × 0.00625 ÷ (1 − 1.00625−120) | $2,967.54 |
| Month 1 interest | 250,000 × 0.00625 | $1,562.50 |
| Month 1 principal | 2,967.54 − 1,562.50 | $1,405.04 |
| Total paid | 2,967.54 × 120 | $356,105 |
| Total interest | 356,105 − 250,000 | $106,105 |
| With $200 extra a month | balance reaches $0 at payment 110 | $10,499 less interest |
Try the same numbers in the calculator, then change the term to 7 years to see how a shorter loan trades a higher payment for far less interest.
How to read the amortization schedule
By year gives each calendar year's payments, principal, interest and ending balance. It is the view to use for budgeting and for your accountant, who tracks interest separately from principal.
By month lists every payment with its date. The first 24 show by default, and one tap shows the rest. Use it to find the balance on a specific date, such as the day you plan to refinance or sell.
Set a first payment month if you know it. Otherwise the schedule starts next month. Your inputs are saved in the page URL, so you can bookmark a scenario or send it to your partner or banker.
Business loan payment calculator: fees, APR and loan comparisons
Offers with different rates and fees are hard to compare by rate alone. Enter each offer's amount, rate, term and upfront fee. The effective APR line puts them on one footing, and total interest plus fees shows the real cost.
For SBA-backed loans, use the SBA loan calculator, which applies SBA's maximum rate by loan size and its published guarantee fee. If the loan is for a laser or other device, compare it with a lease in the lease vs buy calculator, then test whether the device pays for itself in the equipment ROI calculator. Planning a new location? The med spa startup cost calculator shows how much you may need to borrow.
Once a loan is in place, Prospyr's analytics shows whether revenue per room and per provider is covering the payment.
Frequently asked questions
How do I calculate a loan payment?
Use payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments. For $100,000 at 6% over 60 months, r is 0.005 and the payment is $1,933.28. At a 0% rate the payment is just P ÷ n.
What is an amortization schedule?
An amortization schedule is a table of every payment on a loan showing how much goes to interest, how much to principal and what balance is left. CFPB describes it this way: early payments are mostly interest, and over time more of each payment pays down principal. The payment stays level while the split changes.
Why is so much of my early payment interest?
Interest is charged on the remaining balance, and the balance is highest at the start. On $250,000 at 7.5%, month 1 interest is $250,000 × 0.625% = $1,562.50 out of a $2,967.54 payment, so $1,405.04 reduces principal. Each month the balance falls a little, so the interest share falls and the principal share rises.
How much do extra payments save?
Extra principal shortens the loan and cuts interest because the balance drops sooner. On the $250,000, 7.5%, 10-year example, an extra $200 a month pays the loan off in 110 payments instead of 120 and saves about $10,499 in interest. Put extra payments in the calculator to see your own numbers, and ask your lender whether the loan has a prepayment penalty.
How do I use this as a business loan calculator?
Enter the loan amount, rate and term from your term sheet, then add any upfront fee as a percent of the loan. The calculator shows the payment, total interest and an effective APR that includes the fee. It models a standard fixed-rate, fully amortizing loan, so it will not match balloon, interest-only, or merchant cash advance structures.
What is the difference between interest rate and APR?
The interest rate sets the interest charged on the balance. APR also folds in upfront fees by spreading them over the loan, so it is higher than the rate when there are fees. Here, APR is solved from the cash you actually receive (loan minus fees) against the level payment, using monthly compounding.
Is the payment here exactly what my lender will charge?
It will be close but may differ by a few dollars. Lenders can use daily interest, a short or long first period, or rounding rules that a standard schedule does not capture. Use the lender's disclosure for the final figure, and use this calculator to compare offers and plan extra payments.
Sources and scope
- CFPB: How does paying down a mortgage work? (amortization explained)
Government explainer. Describes early payments as mostly interest, later payments as mostly principal, and the standard formula lenders use for a level payment.
- U.S. Small Business Administration: 7(a) loans
Notes that payments stay the same for fixed-rate loans and may change for variable-rate loans.
An estimate for planning, not a loan offer or financial advice. Your lender's disclosure controls the actual payment, fees and prepayment terms.