What is an amortization schedule?

An amortization schedule is a table showing every payment of a loan over its lifetime. Each row shows how much of the payment goes to interest versus principal, and the remaining loan balance after that payment.

Why is so much of my early payment interest?

In early payments, your outstanding balance is high, so interest charges are high. As you pay down principal, interest shrinks and more of each payment goes to principal. This is called negative amortization in reverse — it's how fixed-rate loans work.

How do extra payments affect my amortization schedule?

Extra payments go directly to principal, which reduces your balance faster. This lowers future interest charges and shortens the loan term. On a $280,000 loan at 6.75%, paying $200 extra per month saves about $71,000 in interest.

What is the difference between the amortization period and loan term?

In the US, the amortization period and loan term are typically the same for fixed-rate mortgages. For example, a 30-year mortgage has both a 30-year term and 30-year amortization period. Some other countries (like Canada) have shorter terms with longer amortization periods.

How is my monthly mortgage payment calculated?

Your monthly payment is calculated using the formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate (annual rate ÷ 12), and n is total number of payments. This gives a fixed payment that covers all interest and repays principal over the term.

Amortization Calculator

See your full payment schedule month by month or year by year. Discover how extra payments cut years off your loan and save thousands in interest.

Loan Amount

Interest Rate

Loan Term

Start Month

Start Year

Monthly Payment

$1,816

Payoff date: Feb 2056

Loan Amount

$280,000

Total Interest

$373,787

Total Cost

$653,787

Total Payments

360

Year	Payment	Principal	Interest	Balance
2026	$21,793	$2,984	$18,809	$277,016
2027	$21,793	$3,192	$18,601	$273,824
2028	$21,793	$3,414	$18,379	$270,410
2029	$21,793	$3,652	$18,141	$266,758
2030	$21,793	$3,906	$17,887	$262,852
2031	$21,793	$4,178	$17,615	$258,674
2032	$21,793	$4,469	$17,324	$254,205
2033	$21,793	$4,780	$17,013	$249,425
2034	$21,793	$5,113	$16,680	$244,312
2035	$21,793	$5,469	$16,324	$238,843
2036	$21,793	$5,850	$15,943	$232,993
2037	$21,793	$6,257	$15,536	$226,736
2038	$21,793	$6,693	$15,100	$220,043
2039	$21,793	$7,159	$14,634	$212,884
2040	$21,793	$7,657	$14,136	$205,227
2041	$21,793	$8,190	$13,603	$197,037
2042	$21,793	$8,761	$13,032	$188,276
2043	$21,793	$9,371	$12,422	$178,906
2044	$21,793	$10,023	$11,770	$168,882
2045	$21,793	$10,721	$11,072	$158,161
2046	$21,793	$11,467	$10,325	$146,694
2047	$21,793	$12,266	$9,527	$134,428
2048	$21,793	$13,120	$8,673	$121,308
2049	$21,793	$14,033	$7,759	$107,275
2050	$21,793	$15,011	$6,782	$92,264
2051	$21,793	$16,056	$5,737	$76,208
2052	$21,793	$17,174	$4,619	$59,035
2053	$21,793	$18,369	$3,423	$40,665
2054	$21,793	$19,648	$2,144	$21,017
2055	$21,793	$21,017	$776	$0

How to Use This Amortization Calculator

Enter your loan details to instantly generate a complete amortization schedule showing every payment from start to payoff.

Amortization Schedule Tab

Enter your Loan Amount, Interest Rate, and Loan Term, then set your loan's start month and year. Toggle between Yearly View for a quick summary and Monthly View to see every individual payment. The chart at the top shows your balance dropping over time.

Extra Payments Impact Tab

Add an Extra Monthly Payment to see exactly how much interest you save and how many months sooner you'll be debt-free. The comparison table shows the difference year by year. Even $100 extra per month makes a significant difference over a 30-year loan.

How Amortization Works

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]

Interest portion = Remaining Balance × Monthly Rate
Principal portion = Monthly Payment − Interest portion

Where:
P = Loan principal
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)

Each month, interest is calculated on the remaining balance, not the original loan. As your balance falls, less interest accrues, so more of each fixed payment goes toward principal. This snowball effect accelerates payoff in the final years of the loan.

Example: $280,000 Loan at 6.75% for 30 Years

Year-by-Year Snapshot

Monthly Payment	$1,816
Year 1 Interest	$18,720 (86% of payments)
Year 1 Principal	$2,988
Balance after Year 5	$261,200
Balance after Year 15	$214,400
Total Interest (30 yrs)	$373,760
With $300/mo extra: saves	$100,000+ in interest
With $300/mo extra: pays off	~8 years early

Notice how in year 1, over 86% of each payment goes to interest. By year 20, the split is roughly 50/50. In the final years, nearly the entire payment chips away at principal.

Frequently Asked Questions

An amortization schedule is a complete table of every loan payment over the loan's life. Each row shows the payment date, total payment amount, how much goes to interest, how much reduces your principal balance, and the remaining balance after that payment. It's the roadmap of your entire mortgage journey from first payment to payoff.

In the early months, your balance is near the full loan amount. Interest is calculated on the remaining balance, so when the balance is high, so is the interest charge. As you pay down principal, the balance drops, interest charges shrink, and more of each payment goes toward principal. This is simply how fixed-payment amortizing loans work.

Extra payments are applied directly to your principal balance, immediately reducing it. A lower balance means less interest accrues next month, which means even more of the regular payment goes to principal — a compounding effect. The result is a significantly shorter payoff timeline and substantial interest savings. Use the Extra Payments Impact tab to see the exact numbers for your loan.

Yes. A lump sum principal payment (sometimes called a "curtailment") works the same way as extra monthly payments — it reduces your balance immediately. The effect is most powerful early in the loan. Always specify that a lump sum payment should go toward principal, not toward future payments, to get the interest-saving benefit.

Yes. When you refinance, you start a new amortization schedule based on your current balance, new interest rate, and new loan term. This means you restart the cycle where early payments are mostly interest. It's why refinancing into a new 30-year loan can actually increase total interest paid even with a lower rate — unless you also shorten the term.