📅 Amortization Schedule Calculator
See your full year-by-year loan breakdown — and what an extra payment saves you.
How This Is Calculated
Your fixed monthly payment is calculated from the standard amortization formula, then applied month by month: each payment's interest portion equals the remaining balance times the monthly rate, and the rest reduces principal. Extra payments are applied entirely to principal, shortening the loan and reducing total interest.
Frequently Asked Questions
Why do I pay mostly interest at the start of my loan?
Interest is calculated on your remaining balance, which is highest at the start. As the balance shrinks,
less of each payment goes to interest and more goes to principal.
How much does one extra payment actually save?
Extra payments go entirely toward principal, reducing the balance interest is calculated on for every
remaining payment — even a modest recurring extra payment can cut years off a 30-year mortgage.
Guide: understanding your result
- An amortization schedule splits each payment into interest (charged on the current balance) and principal (everything else).
- Extra principal payments reduce every future interest charge, so even small amounts shorten the loan.
- Interest for a month = balance × annual rate ÷ 12.
Worked example
On a $250,000, 30-year loan at 6.76% the payment is $1,623.16. The first month's interest is $1,408.33, so only $214.82 reduces the balance.
Adding $200 a month pays the loan off in 22 yr instead of 30 yr and saves about $103,851 in interest.
Year-by-year schedule for this example
| Year | Interest paid | Principal paid | Balance at year end |
|---|---|---|---|
| Year 1 | $16,819 | $2,659 | $247,341 |
| Year 2 | $16,633 | $2,845 | $244,496 |
| Year 3 | $16,435 | $3,043 | $241,453 |
| Year 4 | $16,223 | $3,255 | $238,198 |
| Year 5 | $15,996 | $3,482 | $234,715 |
| Year 10 | $14,600 | $4,878 | $213,304 |
| Year 15 | $12,645 | $6,833 | $183,312 |
| Year 20 | $9,906 | $9,572 | $141,297 |
| Year 25 | $6,069 | $13,409 | $82,443 |
| Year 30 | $695 | $18,783 | $0 |
Selected years shown (years 1–5, then every 5th year). Figures are rounded to the nearest dollar.
Common mistakes to avoid
- Sending extra money without marking it "principal only" — some servicers apply it to the next payment instead.
- Assuming the interest share is constant; it is highest at the start.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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