📊 Amortization Calculator
Every loan payment is split into two parts: interest on the remaining balance, and principal that shrinks the debt. Early on, interest dominates; near the end, almost the whole payment attacks the principal. This schedule makes that shift visible year by year.
Extra payments toward principal shorten the loan and cut total interest dramatically — even one extra payment a year can shave years off a mortgage.
How to use this calculator
Enter the loan amount, annual rate and term to get the monthly payment plus a year-by-year table showing how much of each payment went to interest versus principal.
- Enter the Loan amount you will borrow.
- Type the Annual interest rate as a percentage.
- Set the Term in years.
- Press Calculate and scroll the yearly table to see when principal finally overtakes interest.
Frequently asked questions
What is an amortization schedule?
It is a table showing, year by year, how much of your payments covered interest, how much reduced the principal, and what balance remained. Early years are mostly interest; later years are mostly principal.
How is the schedule built?
The monthly payment comes from the standard amortization formula. Each month the calculator charges one month of interest on the remaining balance, applies the rest of the payment to principal, and repeats until the balance reaches zero.
Show me an example.
A $200,000 loan at 6% over 30 years has a monthly payment of about $1,199.10. Total interest is roughly $231,676, and in the first year alone nearly $11,900 of the payments goes to interest rather than reducing the debt.
Can this help me save money?
Yes. The table makes the cost of slow principal paydown visible, which is why even one extra principal payment a year can shave years off a mortgage and cut total interest dramatically.