Amortization Calculator
Work out your monthly loan or mortgage payment, total interest owed, and payoff timeline, and see exactly how much extra payments could save you.
Loan Amortization Calculator
Enter your loan details to see your full payment breakdown
See how much time and interest an overpayment could save. Leave as 0 to ignore.
Your Amortization Summary
Monthly payment, total interest, and payoff schedule
Enter your loan details above and click Calculate Amortization to see your full payment breakdown.
Monthly Payment Per £10,000 Borrowed
Approximate monthly repayment for every £10,000 borrowed, by interest rate and term. Multiply by your loan amount in ten-thousands to estimate your own payment.
| Interest Rate | 15-Year Term | 25-Year Term | 35-Year Term |
|---|---|---|---|
| 3.0% | £69.06 | £47.42 | £38.05 |
| 4.0% | £73.97 | £52.80 | £43.99 |
| 5.0% | £79.08 | £58.46 | £50.35 |
| 6.0% | £84.39 | £64.43 | £57.16 |
| 7.0% | £89.88 | £70.68 | £64.35 |
Amortization Calculator FAQ
Everything you need to know about how loan amortization works and how to reduce the interest you pay.
Loan amortization is the process of paying off a loan through regular, fixed payments over time, where each payment covers both interest and a portion of the principal. Early payments go mostly toward interest, while later payments go increasingly toward the principal balance.
The monthly payment on a fixed-rate loan is calculated using the loan amount, the monthly interest rate, and the total number of payments, so that the balance reaches exactly zero at the end of the term. This is known as the standard amortization formula.
Interest is charged on the outstanding balance, which is highest at the start of the loan. As you make payments and the balance shrinks, a larger share of each fixed payment goes toward principal rather than interest, even though the total payment stays the same.
Extra payments go directly toward reducing the principal balance, which reduces the interest charged in future months. This can significantly shorten the loan term and reduce total interest paid, even with relatively small additional monthly amounts.
A repayment mortgage is a type of amortizing loan, where each monthly payment reduces both interest and principal until the balance reaches zero by the end of the term. This differs from an interest-only mortgage, where payments cover only interest and the principal is repaid separately.
In most cases, yes. A shorter loan term means less time for interest to accrue, so total interest paid is usually lower, even though the monthly payment is higher. Longer terms spread the cost out with smaller payments but typically increase the total interest paid.