Amortization Calculator
Generate a complete loan amortization schedule showing how each payment is split between principal and interest. See your payoff timeline, key milestones, and how extra payments can save you money.
Loan Details
Monthly Payment
Key Milestones
Yearly Summary
| Year | Principal | Interest | End Balance |
|---|---|---|---|
| Year 1 | $3,047 | $20,903 | $296,953 |
| Year 2 | $3,268 | $20,683 | $293,685 |
| Year 3 | $3,504 | $20,447 | $290,181 |
| Year 4 | $3,757 | $20,194 | $286,424 |
| Year 5 | $4,029 | $19,922 | $282,395 |
| Year 6 | $4,320 | $19,631 | $278,075 |
| Year 7 | $4,632 | $19,318 | $273,442 |
| Year 8 | $4,967 | $18,984 | $268,475 |
| Year 9 | $5,326 | $18,625 | $263,149 |
| Year 10 | $5,711 | $18,239 | $257,437 |
| ... 20 more years | |||
Monthly Amortization Schedule (First 12 Months)
| # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Jan 2026 | $1,996 | $246 | $1,750 | $299,754 |
| 2 | Feb 2026 | $1,996 | $247 | $1,749 | $299,507 |
| 3 | Mar 2026 | $1,996 | $249 | $1,747 | $299,258 |
| 4 | Apr 2026 | $1,996 | $250 | $1,746 | $299,008 |
| 5 | May 2026 | $1,996 | $252 | $1,744 | $298,756 |
| 6 | Jun 2026 | $1,996 | $253 | $1,743 | $298,503 |
| 7 | Jul 2026 | $1,996 | $255 | $1,741 | $298,248 |
| 8 | Aug 2026 | $1,996 | $256 | $1,740 | $297,992 |
| 9 | Sep 2026 | $1,996 | $258 | $1,738 | $297,734 |
| 10 | Oct 2026 | $1,996 | $259 | $1,737 | $297,475 |
| 11 | Nov 2026 | $1,996 | $261 | $1,735 | $297,215 |
| 12 | Dec 2026 | $1,996 | $262 | $1,734 | $296,953 |
Principal vs Interest Over Time
Understanding Amortization
How Amortization Works
Early payments are mostly interest; later payments are mostly principal. On a 30-year loan, you won't reach 50% principal until around year 20. Extra payments accelerate this dramatically.
Extra Payments Impact
Extra payments go directly to principal, reducing future interest. Even $100 extra per month on a $300,000 loan can save $50,000+ in interest and pay off 5+ years early.
Biweekly Payments
Paying half your monthly payment every two weeks results in 26 half-payments (13 full payments) per year instead of 12. This extra payment can shave years off your loan.
Frequently Asked Questions
What is an amortization schedule?
An amortization schedule is a complete table of loan payments showing:
- Payment amount each month
- How much goes to principal vs interest
- Remaining balance after each payment
- Total interest paid over time
Why is more interest paid early on?
Interest is calculated on the remaining balance. With a large balance at the start, more of your payment goes to interest.
Example: $300,000 loan at 7%:
- Month 1: $1,750 interest, $246 principal
- Year 10: $1,400 interest, $596 principal
- Year 25: $500 interest, $1,496 principal
How do extra payments help?
Extra payments go directly to principal, which:
- Reduces your balance faster
- Decreases future interest charges
- Shortens your loan term
Example: $100 extra/month on a $300,000 loan at 7% saves ~$55,000 in interest and pays off 5 years early.
What are biweekly payments?
Instead of 12 monthly payments, you make 26 half-payments (every 2 weeks). This equals 13 full payments per year—one extra payment annually.
Result: A 30-year mortgage becomes ~25 years, saving tens of thousands in interest.