Amortization Calculator

Generate a full loan payoff schedule and see the exact principal vs. interest split for every payment — with and without extra payments.

Loan Details

$
$10K$2M
%
1%15%
30 yr
20 yr
15 yr
10 yr
$
Monthly Payment
Total Interest
Total Amount Paid
Payoff Date

Remaining Balance Over Time

Amortization Schedule

Year Principal Interest Total Paid Balance

How to Use the Amortization Calculator

Enter your loan amount, annual interest rate, and term. Add an optional extra monthly payment to see how much faster you can pay off the loan and how much interest you'll save. Set your start date to get accurate payoff month and year. Toggle the schedule between yearly summary and full monthly detail.

The chart shows your remaining balance over time. If you enter extra payments, you'll see two lines: one for the standard schedule and one showing your accelerated payoff. The gap between them represents interest savings.

How Amortization Works

With a fully amortizing loan, each payment is the same dollar amount but the split between principal and interest changes each month. The formula for the monthly payment is: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly rate, and n is the number of payments.

In the early years, the vast majority of each payment is interest. On a 30-year $350,000 mortgage at 6.75%, about 87% of your first payment is interest. By year 25, more than half goes to principal. This is why extra payments in the early years have such a dramatic effect — they reduce the high-interest-accruing balance when it matters most.

How Extra Payments Accelerate Payoff

Every extra dollar you pay goes directly to reducing your principal. This means less interest accrues next month, which means slightly more of your regular payment also goes to principal. The effect compounds over time. An extra $200/month on a $350,000 30-year loan at 6.75% saves approximately $75,000 in interest and cuts about 5.5 years off the loan.

Yearly vs. Monthly View

The yearly view summarizes principal paid, interest paid, and ending balance for each calendar year — great for big-picture planning and tax purposes (mortgage interest is generally deductible). The monthly view shows every individual payment — useful for verifying your lender's statements or planning precisely when your balance will cross a threshold.

Frequently Asked Questions

Loan amortization is the process of paying off a debt through regular scheduled payments. Each payment covers accrued interest and reduces the principal balance. Early payments are mostly interest; later payments are mostly principal. An amortization schedule shows the exact breakdown of every payment over the life of the loan.
Interest is calculated on your remaining balance each month. Early in the loan, your balance is highest, so more of each payment goes to interest. On a $350,000 loan at 6.75%, your first payment has about $1,969 in interest and only $301 in principal. By year 20, the split reverses.
Extra payments reduce principal faster, lowering future interest charges. On a $350,000 30-year mortgage at 6.75%, an extra $200/month saves approximately $75,000 in interest and cuts 5+ years off the loan. The earlier you start making extra payments, the greater the savings.
If your mortgage rate is 6.75% and you expect 7–10% returns in the stock market, investing may yield more long-term wealth. However, paying down the mortgage is a guaranteed return equal to your rate, with no market risk. Most planners suggest maxing retirement accounts first, then making extra mortgage payments.