Finance
Amortization Schedule
See every payment of your loan broken down. Add extra payments to find out how much interest you save and how many years you cut.
Year-by-year breakdown
Annual totals for payment, principal, interest, and remaining balance.
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Start | — | — | — | $340,000 |
| Year 1 | $26,735 | $3,555 | $23,180 | $336,445 |
| Year 2 | $26,735 | $3,806 | $22,928 | $332,639 |
| Year 3 | $26,735 | $4,075 | $22,659 | $328,564 |
| Year 4 | $26,735 | $4,363 | $22,371 | $324,201 |
| Year 5 | $26,735 | $4,672 | $22,063 | $319,529 |
| Year 6 | $26,735 | $5,002 | $21,733 | $314,527 |
| Year 7 | $26,735 | $5,356 | $21,379 | $309,172 |
| Year 8 | $26,735 | $5,734 | $21,000 | $303,437 |
| Year 9 | $26,735 | $6,139 | $20,595 | $297,298 |
| Year 10 | $26,735 | $6,574 | $20,161 | $290,724 |
| Year 11 | $26,735 | $7,038 | $19,696 | $283,686 |
| Year 12 | $26,735 | $7,536 | $19,199 | $276,150 |
| Year 13 | $26,735 | $8,068 | $18,666 | $268,082 |
| Year 14 | $26,735 | $8,639 | $18,096 | $259,443 |
| Year 15 | $26,735 | $9,250 | $17,485 | $250,194 |
| Year 16 | $26,735 | $9,903 | $16,831 | $240,290 |
| Year 17 | $26,735 | $10,603 | $16,131 | $229,687 |
| Year 18 | $26,735 | $11,353 | $15,381 | $218,334 |
| Year 19 | $26,735 | $12,156 | $14,579 | $206,178 |
| Year 20 | $26,735 | $13,015 | $13,720 | $193,163 |
| Year 21 | $26,735 | $13,935 | $12,800 | $179,228 |
| Year 22 | $26,735 | $14,920 | $11,814 | $164,308 |
| Year 23 | $26,735 | $15,975 | $10,760 | $148,333 |
| Year 24 | $26,735 | $17,104 | $9,630 | $131,229 |
| Year 25 | $26,735 | $18,313 | $8,421 | $112,916 |
| Year 26 | $26,735 | $19,608 | $7,127 | $93,308 |
| Year 27 | $26,735 | $20,994 | $5,741 | $72,314 |
| Year 28 | $26,735 | $22,478 | $4,256 | $49,836 |
| Year 29 | $26,735 | $24,067 | $2,667 | $25,768 |
| Year 30 | $26,735 | $25,768 | $966 | $0 |
Understanding Amortization
What is amortization?
Amortization is the process of paying off a loan through scheduled, equal payments over a fixed term. Each payment covers both interest (what the lender charges) and principal (reducing what you owe). Early in the loan, most of each payment goes to interest; over time the split shifts toward principal.
How extra payments reduce interest
Any amount you pay above the minimum goes directly toward reducing your principal. A lower principal means less interest accrues the next month, which means even more of your regular payment goes toward principal — a compounding effect that can save tens of thousands of dollars and years off your loan.
The front-loaded interest problem
On a 30-year mortgage at 7%, roughly 70% of your first payment is interest. It takes about 20 years before the majority of each payment goes to principal. This is why early extra payments have a disproportionately large impact — they attack the balance when interest dominance is highest.
When to pay extra vs invest the difference
If your mortgage rate is lower than your expected investment return, investing the extra cash may build more wealth. But paying extra offers a guaranteed, risk-free return equal to your mortgage rate. Many people split the difference: pay some extra, invest some. Consider your risk tolerance, emergency fund, and tax deductions.
Guide
How to use the Amortization Schedule
The Amortization Schedule helps you make a quick estimate, compare scenarios, and understand the numbers behind the result. It is designed for fast planning, with enough context to make the answer useful instead of just a number.
- Enter the amounts, rates, and time period that match the scenario you want to model.
- Review the main result first, then scan the supporting totals to understand what drives it.
- Change one input at a time to compare payments, interest, growth, savings, or break-even points.
Method
How this calculator works
It models fixed-rate monthly interest and principal, then displays annual totals and year-end balances. The balance-with-extra column compares recurring extra principal; the payment columns describe the original schedule. The final payment is capped at the balance plus interest owed.
This calculator is useful for seeing how a loan balance falls over time and how extra payments change payoff timing.
Because assumptions matter, try a few values that represent optimistic, typical, and conservative cases.
Financial results are estimates. Actual loan terms, taxes, fees, rates, and market returns can change the final outcome.
Example
Worked example
A $300,000 loan at an illustrative 6.5% for 30 years has a $1,896.20 monthly P&I payment. Month one includes $1,625.00 interest and $271.20 principal. The table displays annual totals, not individual monthly rows. Adding $100 monthly from the start gives 312 payments instead of 360, saving $60,994.79 in modeled interest. Other housing costs and lender servicing differences are excluded.
FAQ
Common questions
How much does an extra $100 a month change a 30-year mortgage?
On a $300,000 loan at 6.5% with $1,896.20 monthly principal and interest, $100 extra from the start gives 312 payments instead of 360 and $60,994.79 less modeled interest. Lender rules and other housing costs are excluded.
Why is most of my early mortgage payment interest?
Interest is charged on the outstanding balance, which is largest at the start. On a new $300,000 loan at 6.5%, about $1,625 of the first $1,896 payment is interest. As the balance falls, the split gradually flips — the schedule in this calculator shows exactly when.
Is it better to pay extra monthly or in one lump sum?
Mathematically, money applied sooner saves more interest, so monthly extras beat saving up for a year-end lump sum of the same total. What matters most is that extra payments are applied to principal — check how your lender handles them.
What information do I need for the Amortization Schedule?
You usually need home price, down payment, interest rate, term, and optional recurring extra principal. You can change the inputs and recalculate as many times as needed.
How does the Amortization Schedule calculate the result?
It models fixed-rate monthly interest and principal, then displays annual totals and year-end balances. The balance-with-extra column compares recurring extra principal; the payment columns describe the original schedule. The final payment is capped at the balance plus interest owed.
Are the results exact?
Financial results are estimates. Actual loan terms, taxes, fees, rates, and market returns can change the final outcome.
Related
Related calculators
Guides
Learn more
Sources