Amortization Schedule

See a complete payment-by-payment breakdown of any loan.

Last updated April 2026
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What Is an Amortization Schedule?

An amortization schedule is a complete table showing every payment on a loan from the first month to the last. Each row breaks down how much of your monthly payment goes toward interest and how much goes toward reducing the principal balance. In the early years of a mortgage, the majority of each payment is interest. By the final years, nearly all of it is principal. Understanding this schedule helps you see the true cost of a loan and evaluate whether extra payments are worthwhile.

How to Use This Calculator

Enter your loan amount, annual interest rate, and loan term in years. The calculator generates a full month-by-month amortization table showing your payment number, payment amount, principal portion, interest portion, and remaining balance. You can also enter extra monthly payments to see how they shorten the loan and reduce total interest.

Monthly Payment = P[r(1+r)^n] / [(1+r)^n - 1]
Where P = principal, r = monthly rate, n = total payments

How Front-Loaded Interest Works

On a $300,000 mortgage at 6.5% over 30 years, your monthly payment is about $1,896. In month one, $1,625 goes to interest and only $271 goes to principal. By month 180 (halfway through), you have paid $341,000 but still owe $228,000. This front-loading is why refinancing to restart a 30-year term can cost you more in the long run, even at a lower rate. The Refinance Calculator helps you evaluate whether resetting the clock is worth it.

The Impact of Extra Payments

Even small extra payments make a dramatic difference because they go entirely toward principal, reducing the balance that accrues interest. An extra $100 per month on a $300,000 loan at 6.5% saves over $65,000 in interest and pays off the loan 5 years early. The Early Mortgage Payoff Calculator shows the exact savings for any extra payment amount.

Amortization FAQ

Why does so little of my payment go to principal at first?
Interest is calculated on the outstanding balance each month. When you owe $300,000, the interest charge is large. As the balance shrinks over time, the interest portion of each payment decreases and the principal portion increases. This is the mathematical structure of amortization, not a trick by the lender.
Should I make extra payments or invest the money?
It depends on your mortgage rate versus expected investment returns. If your mortgage rate is 6.5%, an extra payment earns you a guaranteed 6.5% return (the interest saved). If you expect investments to return 8-10% long-term, investing may be better mathematically. However, paying off the mortgage provides certainty and peace of mind that market returns do not.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but a lower interest rate and vastly less total interest. On $300,000, a 30-year at 6.5% costs $383,000 in total interest. A 15-year at 5.75% costs about $143,000. That is a $240,000 difference. Choose 15 years if you can comfortably afford the higher payment without sacrificing retirement savings or emergency funds.

How Amortization Schedules Work

In the early years of a mortgage, most of your payment goes to interest. On a $300,000 loan at 6.5%, your first payment sends $1,625 to interest and only $271 to principal. By year 15, the split is roughly even. By year 25, most of each payment reduces your balance. This front-loading of interest is why extra payments early in the loan have such a dramatic impact on total interest paid.

This calculator generates a full month-by-month amortization schedule showing exactly how much of each payment goes to principal vs. interest. Add extra payments to see how they shift the entire schedule and shave years off your loan. For a broader view of your mortgage options, use our mortgage calculator or explore whether refinancing makes sense.