Amortization Calculator

An amortization schedule is a complete table showing every loan payment broken down into principal and interest portions. It shows how your loan balance decreases over time. Early payments are mostly interest, while later payments are mostly principal.

With amortization, each payment is calculated to be equal throughout the loan term. Early payments have more interest (because the balance is higher), while later payments have more principal. This ensures the loan is fully paid off by the end of the term.

Make extra principal payments to reduce the balance faster. Even small extra payments significantly reduce total interest. Pay biweekly instead of monthly (makes 13 payments/year). Refinance to a lower rate if possible. Shorter loan terms also reduce total interest.

Principal is the original loan amount you borrowed. Interest is the cost charged by the lender for borrowing that money. Each payment reduces your principal while also paying the interest owed on the remaining balance.

Interest is calculated on the remaining balance. At the start, your balance is highest, so more of each payment goes to interest. As you pay down the principal, less interest accrues, so more of each payment goes to principal.