Loan Amortization Template
Calculate loan payments with principal and interest breakdown.
What's Included:
- Monthly payment calculator for any loan amount, rate, and term
- Full amortization schedule showing principal and interest split per payment
- Extra payment modeler showing how additional payments shorten the loan term
- Total interest cost comparison for different loan terms and rates
Available Formats:
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Understanding your loan amortization schedule shows you exactly where your money goes each month. In the early years, most of your payment goes to interest—which is why paying extra on principal early in the loan has such a dramatic effect on total interest cost and payoff date.
The extra payment modeler is the most powerful feature. Even an extra $100 per month on a $200,000 mortgage can save tens of thousands in interest and shave years off the term. This template lets you see the exact impact before committing to a higher payment, helping you make an informed decision about how to allocate surplus cash.
How to Use This Template
Enter Loan Details
Input the loan amount, annual interest rate, and loan term in months. The template calculates your monthly payment instantly.
Review the Amortization Schedule
Examine the month-by-month schedule to see how much of each payment goes to principal vs. interest. Early payments are mostly interest; later payments are mostly principal.
Model Extra Payments
Enter an additional monthly payment amount to see how it shortens the loan term and reduces total interest paid.
Frequently Asked Questions
How is a loan amortization schedule calculated?
Each month, the interest portion is calculated on the remaining balance (balance × monthly rate). The principal portion is the total payment minus interest. The remaining balance decreases by the principal portion each month. This template generates the full schedule automatically.
Should I make extra payments on my business loan?
Compare the loan interest rate to the return you could earn by investing that money in your business. If the loan charges 8% but your business generates 20% ROI, invest in the business. If growth opportunities are limited, paying down debt is a guaranteed return equal to the interest rate.
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