French Amortization Calculator
Use this calculator to estimate fixed periodic payments and view an amortization schedule where each payment is constant but the interest/principal split changes over time.
What is French amortization?
French amortization (also called the Price system or fixed-payment amortization) is a loan repayment method where your payment amount stays the same each period. Even though the payment is fixed, the composition changes over time: early payments are mostly interest, while later payments are mostly principal.
Why this method is popular
- Predictable payment amount makes budgeting easier.
- Widely used for mortgages, auto loans, and personal loans.
- Simple to compare between lenders because the payment is fixed.
How the formula works
The periodic payment for French amortization is calculated with the annuity formula:
Payment = P × r ÷ (1 − (1 + r)−n)
- P = principal (loan amount)
- r = periodic interest rate (annual rate divided by payments per year)
- n = total number of payments
If the interest rate is 0%, the formula simplifies to principal divided by number of payments.
How to use this calculator
- Enter your loan amount.
- Enter annual interest rate.
- Choose loan term in years.
- Select payment frequency and number of schedule rows to display.
- Click Calculate to see the payment and breakdown.
Reading your amortization schedule
Each line in the schedule shows one payment period:
- Payment: Fixed amount due each period.
- Interest: Charged on remaining balance.
- Principal: Portion that reduces what you owe.
- Balance: Remaining debt after payment.
In the first years, interest usually takes a larger share. As balance decreases, interest declines and principal repayment accelerates.
French amortization vs. constant amortization
French (fixed-payment) method
- Equal installment every period.
- Higher interest share at the beginning.
- Best for payment stability.
Constant amortization method
- Principal portion is fixed every period.
- Payments start higher and decline over time.
- Total interest can be lower than fixed-payment schedules.
Practical tips before borrowing
- Compare APR, not just monthly payment.
- Check fees, insurance, and penalty clauses.
- Ask if extra principal payments are allowed without penalty.
- Use scenarios (different rates/terms) to stress-test affordability.
Quick FAQ
Does a longer term reduce payment?
Yes. A longer term lowers periodic payment but usually increases total interest paid.
Can I save money by paying extra?
Usually yes. Extra principal payments reduce balance faster and lower future interest.
Is this calculator financial advice?
No. It is an educational planning tool. Always verify terms with your lender and consult a qualified professional for major borrowing decisions.