Last updated: March 2, 2026 by Dr. David Park

What Is Loan Amortization?

Formula

Loan amortization is the process of paying off a debt over time through regular payments covering both principal and interest.

This calculator shows how each payment is split between interest and principal, helping you understand the true cost of your loan.

Common use cases:

  • Understanding mortgage payment breakdown
  • Seeing the impact of extra payments
  • Comparing loan scenarios

Frequently Asked Questions

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Dr. David Park

Applied Mathematician, PhD Mathematics

David holds a PhD in Applied Mathematics from MIT. He has published research on numerical methods and computational algorithms used in engineering and scientific calculators.

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