Loan Amortization Calculator
This calculator builds the full amortisation schedule for a fixed-rate loan and shows the first 12 payments. Enter your own amount, rate, term, and any extra monthly payment — the defaults are examples.
How this calculator works
An amortisation schedule lists every payment in order and splits each one into interest and principal. The schedule is built period by period.
Formula: the fixed payment is P × r / (1 − (1 + r)^−n). For each period, interest = balance × r, principal = payment − interest, and the new balance = balance − principal. The final payment is adjusted so the balance reaches exactly zero.
Because interest is charged on the remaining balance, the interest share is highest in the first payment and shrinks over time. That is why an extra payment early in the term saves more interest than the same amount paid near the end.
If you add an extra monthly payment, this calculator applies it every period. The loan is paid off earlier, so both the number of payments and the total interest fall. Some lenders charge a prepayment penalty; check your agreement before making extra payments.
The output is an illustration using the numbers you enter, not a lender's quote. Real schedules can differ because of fees, payment dates, compounding conventions, and the day funds are advanced. The first 12 rows are shown so you can see the interest-to-principal shift without a wall of numbers.
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Frequently Asked Questions
What is an amortisation schedule?
It is a table of every payment showing how much goes to interest, how much reduces the principal, and the balance left after each payment.
Why does the balance fall slowly at first?
Early payments are mostly interest because the balance is at its highest. As the balance falls, more of each payment goes to principal and the pace accelerates.
Does an extra payment always save interest?
On most loans, yes, because it reduces the balance that interest is charged on. Check whether your lender charges a prepayment penalty first.
Is the schedule exact?
It is a precise amortised illustration, but real schedules vary with fees, payment timing, and the lender's compounding method. Treat it as a close estimate.
Last updated: September 16, 2026 · By the Instalment.ca Editorial Team
We research Canadian lending rules and update these pages when the law, the data, or the available offers change. We are not a lender and we do not provide personal financial advice.
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This is general information, not financial, legal, or tax advice.
Rates and terms vary by lender, creditworthiness, and province. Figures shown are examples only.