Amortization Schedule Calculator
See how each year of a loan splits between principal and interest, with the remaining balance.
How to use
- Enter the loan amount, rate and term.
- See the monthly payment.
- Read the yearly table to watch principal grow and interest shrink.
How the Amortization Schedule Calculator works
Produces the full month-by-month breakdown of a loan: how much of each payment goes to interest, how much to principal, and what balance remains.
The fixed payment is calculated from the standard amortization formula. Then for each month the interest portion is the current balance times the monthly rate, the principal portion is whatever is left of the payment, and the balance drops by that principal amount.
interest = balance × r, principal = payment − interest, balance = balance − principal
Worked example
On a $250,000 mortgage at 6% for 30 years, the first payment of about $1,499 splits into $1,250 interest and only $249 principal. By month 240 the split has reversed.
Things worth knowing
- The crossover point — where principal first exceeds interest — comes surprisingly late on long loans, often past the halfway mark on a 30-year mortgage.
- Because early payments are almost all interest, overpaying in the first years saves far more than overpaying at the end.
Frequently asked questions
What is an amortization schedule?
It shows how each payment is split between interest and principal over the life of a loan, and the remaining balance.
Why is early interest so high?
Interest is charged on the outstanding balance, which is largest at the start, so early payments are mostly interest.
Why does my lender's schedule differ by a few cents?
Rounding conventions differ, and some lenders use daily rather than monthly interest accrual. The totals should agree closely.