Amortization Calculator
Break down a fixed-rate loan into its monthly payment, total interest, and total cost over the life of the loan — see exactly how much of every payment goes to interest vs. principal.
Your Result
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| Result | What it means? |
|---|---|
| < 10% | Minimal cost Total interest is under 10% of the principal — a very cheap loan by typical standards. |
| 10% – 30% | Moderate cost Total interest is between 10% and 30% of the principal — in line with most consumer loans. |
| 30% – 60% | High cost Total interest is between 30% and 60% of the principal — typical of longer-term or higher-rate loans. |
| 60% – 100% | Very high cost Total interest is between 60% and 100% of the principal — long-term borrowing at typical rates. |
| > 100% | Extreme cost Total interest exceeds the principal itself — consider a shorter term or lower rate. |
| — | Out of range Enter values above to see the loan's monthly payment and its interest cost. |
Amortization Formula
M = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1)
Standard fixed-rate amortizing payment formula. M = monthly payment, P = principal, r = monthly interest rate, n = number of monthly payments.
- M = P · r(1+r)ⁿ ⁄ ((1+r)ⁿ − 1).
- Total interest = M · n − P.
- At 0% interest the payment simplifies to M = P ⁄ n and the total interest is 0.
This calculator is for educational planning and does not constitute a loan offer. Actual rates, fees, and term limits depend on the lender, the borrower's profile, and the type of loan.