Amortisation Schedule Calculator
See your repayment, total interest and a full amortisation schedule for any loan. Monthly, fortnightly or weekly, with extra repayments. Free, no sign-up.
What is an amortisation schedule?
An amortisation schedule is a table that shows every repayment on a loan, split into how much goes to interest and how much reduces the amount you owe (the principal). It also shows the balance left after each repayment, all the way down to zero.
"Amortisation" is the Australian and British spelling; "amortization" is the American one. They mean the same thing.
How amortisation works
On a standard loan your repayment stays the same, but its make-up changes over time. Interest is charged on the outstanding balance, so early repayments are mostly interest. As the balance falls, less interest is charged and more of each repayment goes to the principal.
The fixed repayment is calculated with this formula, where P is the loan amount, r is the interest rate per repayment period and n is the number of repayments:
Repayment = P × r ÷ (1 − (1 + r)−n)
Worked example: an $80,000 equipment loan
A business borrows $80,000 to buy equipment, at 8.5% a year over 5 years with monthly repayments.
- The monthly repayment is $1,641.32.
- The first repayment is $566.67 interest and $1,074.66 principal, leaving $78,925.34 owing.
- By the end of year one, the business has paid $6,285.54 in interest and reduced the balance to $66,589.67.
- Over the full 5 years, the loan costs $18,479.35 in interest, $98,479.35 in total.
Adding an extra $250 a month cuts the interest to $15,426.69, a saving of $3,052.66, and pays the loan off 9 months early. Enter these figures in the calculator above to see the full schedule.
Why businesses use amortisation schedules
An amortisation schedule helps you plan cash flow, compare loan offers and decide whether extra repayments are worth it. For bookkeeping, it splits each repayment into the interest you record as an expense and the principal that reduces the loan liability, which makes reconciling loan accounts in Xero far easier.
Download the schedule as a CSV and keep it with your loan records, or share it with your accountant or bookkeeper.
Amortisation schedule questions
Is this amortisation calculator free?
Yes. There's no sign-up and nothing is stored. Everything runs in your browser.
Why is most of my early repayment interest?
Interest is charged on the balance you still owe. At the start the balance is at its highest, so the interest portion is largest. Each repayment reduces the balance, so the interest share shrinks and the principal share grows.
How do extra repayments help?
Extra repayments go straight to the principal, so less interest is charged from then on. Even small regular extras can take months or years off a loan. Check whether your loan allows extra repayments without fees; some fixed-rate loans limit them.
Are fortnightly repayments cheaper than monthly?
A little, because the balance is reduced more often. This calculator works out a true fortnightly or weekly repayment for the same term. Some lenders instead set fortnightly repayments at half the monthly amount, which adds up to an extra month's repayment each year and pays the loan off sooner.
Will this match my lender's figures exactly?
It should be very close, but lenders can differ in how they calculate daily interest, round repayments and add fees. Use this as a planning tool and check exact figures with your lender.
Can I use this for a car loan, mortgage or chattel mortgage?
Yes. Any loan with a fixed rate and regular equal repayments works, including car loans, home loans, personal loans, equipment finance and chattel mortgages. It doesn't model balloon payments or variable rates.
Is it amortisation or amortization?
Both. Amortisation is the Australian and UK spelling and amortization is the US spelling. The calculation is identical.