Amortization Calculator — Your Loan, Year by Year
Use this loan amortization calculator to turn any fixed-rate loan into a complete amortization schedule: enter the amount, interest rate, and term, and you get the exact monthly payment, the total interest, and a full amortization table showing how every payment splits between principal and interest.
Your loan details
Advanced options — extra payments
Extra payments (optional)
Extra payments — the monthly extra, the yearly extra and one-time extras — are already included in the result with their default values — open Advanced options to change them.
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Your amortization
With your extra payments
- On the default $200,000 loan at 6% for 30 years, the payment is $1,199.10 a month, total interest is $231,676.38 — 115.84% of the amount borrowed.
- Year one is mostly interest: $11,933.19 of interest against only $2,456.02 of principal — the first payment splits $1,000.00 of interest to $199.10 of principal.
- The crossover comes in year 19, at payment 223: the first year you pay more principal ($7,212.77) than interest ($7,176.45).
Principal vs interest, year by year
This amortization chart shows how each year’s payments split between principal (teal) and interest (coral), with the remaining balance as the indigo line. Read it left to right: the coral interest bars start tall and shrink while the teal principal bars take over — on the default $200,000 loan at 6%, the crossover comes in year 19, the first year you pay more principal ($7,212.77) than interest ($7,176.45). The chart updates as you type, including any extra payments.
Your schedule
Every period of your loan with its real calendar date: payment, principal, interest, and the balance left. Extra payments are included when you set them above.
| Year | Payment | Principal paid | Interest paid | Balance left |
|---|
How to read this amortization table. Each row of the loan amortization schedule is one period of your loan. Payment is the fixed amount that leaves your account — it never changes on a fixed-rate loan. Principal paid is the part that actually reduces what you owe. Interest paid is the lender’s charge for that period, always the previous balance multiplied by the monthly rate. Balance left is what you still owe after the payment lands. Use the Yearly view for the shape of the loan, and the Monthly view when you need one exact payment.
Take the default loan — $200,000 at 6% for 30 years — in the Monthly view. The first row reads: payment $1,199.10, interest $1,000.00, principal $199.10, balance $199,800.90. Jump to the last row and the same payment reads almost in reverse: $1,193.14 of principal and just $5.97 of interest. In between, the two columns trade places gradually — in year one you pay $11,933.19 of interest against only $2,456.02 of principal, and the crossover does not arrive until payment 223, in year 19.
The same table serves every fixed-rate loan. Read it as a mortgage amortization schedule when the loan is a home loan — the columns and the math are identical, and only taxes, insurance, and PMI sit outside it. Any amortization table calculator produces what lenders also call a repayment schedule; whatever the label, if a row’s interest is not the previous balance times the monthly rate, the schedule is wrong. Set extra payments above and every row from that point on is rebuilt, so you can watch the balance column fall faster.
The complete guide to amortization
Everything about how loan amortization works — the formula behind your monthly payment, what an amortization schedule really tells you, and how extra payments can save you tens of thousands of dollars.
How amortization actually works
Amortization is the process of paying off a loan in fixed, regular installments. Each monthly payment is split into two parts: interest, charged on your remaining balance, and principal, which reduces what you owe. Because interest is always balance × monthly rate, the split shifts over time — early payments are mostly interest, later payments mostly principal — while the payment itself never changes.
The monthly payment comes from the standard amortization formula. With loan amount P, monthly rate r = annual rate ÷ 12 ÷ 100, and n monthly payments:
M = P × r × (1+r)n ÷ ((1+r)n − 1) · if the rate is zero, the payment is simply P ÷ n.
Worked example: $200,000 at 6% annual interest for 30 years. The monthly rate is 0.005 and there are 360 payments, so M = 200,000 × 0.005 × 1.005360 ÷ (1.005360 − 1) = $1,199.10. In month one, interest is $200,000 × 0.005 = $1,000, so only $199.10 reduces the principal. By the final year, the balance is small and nearly the entire $1,199.10 goes to principal. Total of all payments: $431,676.38. Total interest: $231,676.38 — more than the amount borrowed.
Amortized loans, in plain terms
An amortized loan is simply a loan with a finish line built in: you agree to a fixed payment, the lender applies each payment first to that month’s interest and then to the balance, and after the last scheduled payment the balance is exactly zero — nothing ballooning, nothing left over. Mortgages, car loans, and most personal loans work this way. Mortgage amortization is the same process on a home loan, and your mortgage amortization schedule is just this page’s table with a house attached: the payment, split, and balance columns behave identically.
That is why a plain payment estimate is not enough. Think of this page as a mortgage calculator with amortization built in rather than bolted on — the payment is the headline, but the schedule is the story. Used for a car or personal loan instead, the same tool doubles as an amortized loan calculator: enter the amount, rate, and term, and the finish line appears. One scope note: the schedule assumes one fixed payment every month. A biweekly plan — half the payment every two weeks — effectively adds one extra monthly payment a year; you can model its effect with the extra-payment fields above.
Extra payments: the fastest way to beat the schedule
Every extra dollar you pay goes directly to principal (once that month’s interest is covered), which shrinks the balance that all future interest is charged on. The effect compounds: paying extra early saves far more than paying extra late, because interest is highest when the balance is largest.
On the same $200,000 loan at 6% for 30 years:
- $200 extra per month — you pay off the loan in 21 years instead of 30 (252 payments), and total interest falls from $231,676.38 to $151,875.87. That is $79,800.51 saved and 9 years of payments eliminated.
- $100 extra per month — payoff in about 24 years 7 months (295 payments), interest saved $49,138.41.
- A single $10,000 extra payment in month 12 — payoff in 26 years 6 months (318 payments), interest saved $41,044.31.
Try it above: enter an extra monthly amount and watch the “With your extra payments” panel update the payoff date, interest saved, and time saved — the chart and schedule update too. One practical tip: when you send extra money, tell your lender in writing to apply it to principal only, or it may be treated as an early next payment instead.
Rate vs. term: what really drives your cost
Two levers control the total cost of a loan — the interest rate and the term — and they pull in different directions. Here is the same $200,000 loan under three scenarios:
| Scenario | Monthly payment | Total interest |
|---|---|---|
| 6% for 30 years | $1,199.10 | $231,676.38 |
| 7% for 30 years | $1,330.61 | $279,017.80 |
| 6% for 15 years | $1,687.71 | $103,788.46 |
A single point of rate (6% → 7%) adds $47,341 in interest over 30 years — which is why shopping for rate matters more than haggling over fees. Halving the term (30 → 15 years) saves $127,888 in interest but raises the monthly payment by $488.61. The right choice depends on your cash flow: a 15-year term is the cheapest loan you can get, but only if the higher payment leaves room for emergencies and other goals.
The amortization formula, explained piece by piece
Each part of M = P × r × (1+r)n ÷ ((1+r)n − 1) has a job. P is the amount you borrow. r is the monthly interest rate — lenders quote annual rates, so divide by 12 and by 100 (6% becomes 0.005). n is the total number of payments (years × 12). The (1+r)n terms account for compounding: money grows exponentially, so the formula discounts every future payment back to today’s dollars and sets their sum equal to P.
Two edge cases worth knowing. If the rate is zero, there is no interest to split — the payment is simply the loan divided by the number of payments ($200,000 ÷ 360 = $555.56). And if you want to check any lender’s number in a spreadsheet, the PMT function does the same math: =PMT(6%/12, 360, 200000) returns −$1,199.10 (negative because it is money leaving you).
What your amortization schedule doesn’t show
An amortization schedule covers principal and interest only. Your actual monthly outlay on a mortgage is usually higher, because lenders add:
- Property taxes and homeowner’s insurance — collected monthly into escrow and paid on your behalf.
- PMI (private mortgage insurance) — typically required below 20% down, and it drops off once you reach enough equity.
- HOA dues, where applicable — never part of the loan itself.
- Origination fees and closing costs — paid up front, not amortized into the payment (unless rolled into the loan amount).
Two more distinctions. An adjustable-rate mortgage (ARM) is re-amortized every time its rate resets, so the payment changes — this calculator models fixed-rate loans only. And in accounting, “amortization” also means spreading an intangible asset’s cost (a patent, a loan’s fees) over its useful life — same word, different job. Finally, beware negative amortization: some loans let you pay less than the monthly interest, and the unpaid interest is added to your balance. Your balance grows instead of shrinking — the opposite of everything above.
Five mistakes borrowers make
- Shopping by monthly payment alone. A $1,199 payment for 30 years costs $231,676 in interest; a $1,688 payment for 15 years costs $103,788. The cheaper payment is the more expensive loan.
- Ignoring total interest. Always compare the “Total interest paid” row — it is the true price of borrowing.
- Resetting the clock when refinancing. Refinancing a 30-year loan after 10 years into a new 30-year loan restarts amortization at its most interest-heavy phase. Compare remaining interest on the old loan against total interest on the new one, not just the monthly payment.
- Not directing extra payments to principal. Extra money applied as an “early next payment” does not cut future interest the same way. Specify principal-only, in writing.
- Assuming the schedule includes escrow. It doesn’t — budget taxes, insurance, and PMI on top of the amortized payment.
Keep exploring
Three companion tools for a fuller picture of borrowing.
How it works
Three steps from loan terms to your full payoff picture.
Enter your loan
Type the amount, annual rate, and term in years.
We amortize it
The fixed monthly payment is computed, then every payment is split into interest and principal.
See every year
The chart and table show exactly where each dollar goes, year by year, until the balance hits zero.
The math behind amortization
A fixed-rate loan is amortized so that every monthly payment is identical — early payments are mostly interest, later ones mostly principal. With monthly rate r = annual rate ÷ 12 ÷ 100 and n = years × 12 payments:
Worked example — $200,000 at 6% for 30 years:
| Step | Calculation | Amount |
|---|---|---|
| Monthly rate | 6% ÷ 12 ÷ 100 | 0.005 |
| Payments | 30 × 12 | 360 |
| Monthly payment | $200,000 × 0.005 × 1.005360 ÷ (1.005360 − 1) | $1,199.10 |
| Total of payments | $1,199.10 × 360 | $431,676.38 |
| Total interest | $431,676.38 − $200,000 | $231,676.38 |
Go deeper
The details that separate a rough guess from a trustworthy schedule.
Each month’s interest equals the current balance × monthly rate, and whatever is left of your fixed payment reduces the principal. On a $200,000 loan at 6%, month one’s interest is $200,000 × 0.005 = $1,000 — so only $199.10 of your $1,199.10 payment touches the principal. As the balance shrinks, the interest slice shrinks with it and more of each payment goes to principal. In the final year you pay almost pure principal.
This front-loading is why extra payments early in the loan save far more interest than the same extra dollars paid near the end.
- Rate matters most. On a 30-year $200,000 loan, 6% costs $231,676 in interest while 7% costs $279,018 — one point adds roughly $47,000.
- Shorter terms slash interest. The same loan at 15 years (same 6%) has a higher payment of about $1,687.71 but total interest of only about $103,788.
- The payment never changes on a fixed-rate loan — only the split between principal and interest moves each month.
- This schedule ignores taxes, insurance, PMI, and fees, which lenders add on top of principal and interest.
Amortization period and term: what the period changes
The term is how long you pay. The amortization period is how long the schedule assumes you pay. Usually they are the same number — and when they differ, the difference matters.
On a standard amortizing loan the payment is set so the balance reaches zero exactly at the end of the term, so term and amortization period are one and the same. A $250,000 loan at 6.5% over 30 years (360 payments) costs $1,580.17 a month and $318,861.22 of total interest. The same loan over 15 years (180 payments) costs $2,177.77 a month and $141,998.31 of interest: $597.60 more each month, $176,862.91 less interest overall. Shortening the period is the single biggest lever on total cost, and the calculator above shows both versions in seconds — change the term, watch the schedule rebuild.
Extra payments shorten the period from the inside
An extra payment does not change the contract term, but it does change the amortization period in practice: every extra dollar goes to principal, so the balance falls faster and later payments contain less interest. Adding $200 a month to the $250,000 loan above finishes it in 265 months instead of 360 and cuts total interest to $221,243.10 — a saving of $97,618.12. The schedule on this page shows the effect payment by payment: the crossover point, where principal first exceeds interest in a single payment, arrives years earlier.
When the period and the term part company
Some loans amortize over one period and come due sooner: a loan amortized over 30 years with a balloon payment after 10 years has a 30-year amortization period and a 10-year term, and the remaining balance is due at the balloon date. Interest-only periods work the other way: while only interest is paid, the balance does not fall at all, so the amortization period has not really started. And negative amortization is the boundary case to recognise: if the payment is smaller than the interest due, the unpaid interest is added to the balance, the balance grows, and the schedule moves backwards. Any payment that does not at least cover the interest for the period should be treated as a warning sign, not a bargain.
Reading a schedule is mostly a habit: check the first payment (interest-heavy), the last payment (principal-heavy), and the total-interest line. On the $250,000 example the first payment is $1,354.17 of interest and only $226.00 of principal. That split is not a trick — it is the arithmetic of a large balance at 6.5% — and it is why the early years feel slow and the later years feel fast.
Frequently asked questions
Quick answers about amortization and how this schedule is built.
How is the monthly payment calculated?
The standard amortization formula: M = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly rate (annual ÷ 12 ÷ 100), and n is the number of monthly payments. If the rate is zero, the payment is simply the loan divided by the number of payments.
What is an amortization schedule?
A period-by-period record of your loan: each row shows how much of that period’s payments went to principal, how much went to interest, and the balance remaining at the end. This calculator builds it month by month, then rolls the months up into yearly rows — or shows every month with the Monthly view.
Why is most of my early payment interest?
Monthly interest is always balance × monthly rate. When the balance is at its largest — the start of the loan — the interest slice is largest too, leaving less of your fixed payment for principal. As the balance falls, the interest slice falls and the principal slice grows.
Does the payment stay the same for the whole term?
Yes, for a fixed-rate loan — the monthly payment is constant by construction. Only the split between principal and interest changes over time. Adjustable-rate loans are different: their rate, and therefore the payment, can reset.
How do extra payments affect the schedule?
Extra payments go entirely to principal (once the scheduled interest is covered), which shrinks the balance faster and cuts all future interest. Paying extra early in the loan has the biggest effect, because interest is highest then. Use the extra-payment inputs above to see your exact savings.
Is total interest really more than the loan itself?
It can be. A $200,000 loan at 6% for 30 years accrues about $231,676 in interest — more than the amount borrowed. Long terms at moderate rates make interest the dominant cost, which is exactly what this calculator’s totals reveal.
How much can extra payments really save?
On a $200,000 loan at 6% for 30 years, paying $200 extra per month saves $79,800.51 in interest and pays the loan off 9 years early (21 years instead of 30). Even $100 extra per month saves $49,138.41. The earlier in the loan you start, the more each extra dollar saves.
Should I choose a 15-year or 30-year term?
A 15-year term at 6% on $200,000 costs $103,788.46 in total interest versus $231,676.38 on a 30-year term — a $127,888 saving — but the payment is $1,687.71 instead of $1,199.10. Choose the 15-year only if the higher payment still leaves room for an emergency fund and other goals; otherwise take the 30-year and make voluntary extra payments.
Why does my lender’s schedule differ by a few dollars?
Lenders round each month’s interest and principal to the cent and may adjust the final payment, while this calculator compounds the exact values. Small differences of a few dollars over the life of the loan are normal rounding effects, not errors. Fees, escrow, and PMI also sit outside the amortization math.
What is the difference between an amortization schedule and a payment breakdown?
A payment breakdown is a snapshot: it shows how one single payment splits between principal and interest. An amortization schedule is the whole film — that same breakdown repeated for every payment of the loan, with the running balance beside it. The breakdown tells you where this month’s money went; the schedule tells you where every month’s money goes, when the balance halves, and what the loan costs in total.
Can I get an amortization table for a car loan or personal loan?
Yes — the math is identical for any fixed-rate loan, because only three inputs matter: amount, rate, and term. Enter a $25,000 car loan at 7% for 5 years and the table rebuilds instantly: a $495.03 monthly payment and $4,701.80 of total interest. The same works for personal loans, student loans, and mortgages. Add anything in the extra-payment fields and the schedule also shows your earlier payoff and the interest it saves.
What is the difference between the loan term and the amortization period?
The term is how long you have to repay the loan under the contract. The amortization period is the timespan the payment calculation assumes. On a standard fixed-rate loan they match, so the balance hits zero at the final payment. They differ on balloon loans, where the payment is calculated over a long amortization period but the remaining balance comes due much sooner, and on interest-only loans, where the amortization period effectively starts only when principal payments begin.
How do I calculate an amortization table by hand?
Work one payment at a time. Interest for the month equals the current balance times the monthly rate, which is the annual rate divided by 12 and by 100. Principal equals the fixed monthly payment minus that interest. Subtract the principal from the balance and repeat with the new balance. The monthly payment itself comes from the amortization formula, M equals P times r times one plus r to the power n, divided by one plus r to the power n minus one, where P is the loan amount, r is the monthly rate and n is the number of payments.
Can extra payments shorten the amortization period?
Yes. An extra payment goes to principal, so the balance falls faster and every later payment contains less interest. On a $250,000 loan at 6.5 percent over 30 years, an extra $200 a month finishes the loan in 265 months instead of 360 and saves $97,618.12 of interest. The contract term does not change, but the loan ends early and the total cost falls. Check first that your loan has no prepayment penalty and that extra payments are applied to principal rather than held as advance payments.
What is negative amortization and when does it happen?
Negative amortization happens when the monthly payment is smaller than the interest due for that month, so the unpaid interest is added to the balance and the amount owed grows instead of shrinking. It can occur on loans with very low initial payments or payment caps that lag behind a rising rate. A schedule that shows the balance rising month after month is the sign to look for, and it should prompt a conversation with the lender before the balance grows further.
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Disclaimer
Results are estimates for information only — they are not financial advice. This calculator assumes a fixed interest rate and fixed monthly payments with no fees. Extra payments you enter are applied to principal in the month specified. Real loans include closing costs, taxes, insurance, PMI, and lender-specific rounding that will change your actual payment and totals. For decisions that matter, consult a qualified financial professional or your lender.