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Amortization Calculator

See Your Complete Payment Schedule

Generate a month-by-month amortization schedule showing exactly how each payment is split between principal and interest. Track your equity growth over time.

72% Interest in Year 1
38% Interest in Year 15
$312K Total Interest (30yr)
$45K Equity After 5 Years

In Year 1, only 28% of your payment builds equity. By Year 15, it's 62%!

Loan Details

Enter your loan information to generate the schedule

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See how extra payments accelerate your payoff
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Applied in December each year
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Applied to first payment

Your Results

Your $320,000 loan will cost $407,000 total over 30 years — that's $207,000 in interest. In Year 1, 72% of each payment goes to interest. By Year 15, only 38% goes to interest as you build equity faster.

Making one extra payment per year saves $34,000+ and cuts 4 years off your loan!
Monthly Payment
$2,023
Principal & Interest

Loan Summary

Loan Amount $320,000
Total of 360 Payments $728,185
Total Interest $408,185
Payoff Date Jan 2055

Equity Builder

Year 1: 0%
0% 25% 50% 75% 100%
12% Equity at Year 5
27% Equity at Year 10
Year 22 50% Equity

Principal vs Interest Over Time

Watch how your payments shift from interest to principal as the loan matures

Principal Interest

Loan Balance Over Time

See how your balance decreases and equity builds throughout the loan

Equity Built Remaining Balance

Amortization Schedule

Complete payment breakdown for your loan

Year Beginning Balance Principal Paid Interest Paid Ending Balance Cumulative Interest
Total $320,000 $408,185 $0 $408,185

Payment Milestones

Key moments in your loan payoff journey

First $50K Principal

Month 72 Dec 2030

25% Paid Off

Month 108 Dec 2033

50% Paid Off

Month 198 Jun 2041

Loan Payoff

Month 360 Jan 2055

Understanding Amortization

What Is Amortization?

Amortization is the process of spreading out a loan into a series of fixed payments over time. Each payment covers both principal (the original amount borrowed) and interest (the cost of borrowing).

In the early years of a mortgage, most of your payment goes toward interest. As time goes on, more of each payment goes toward paying down the principal. This gradual shift is what the amortization schedule shows.

How to Read an Amortization Schedule

  • Payment Number: Which payment in the sequence (1-360 for a 30-year loan)
  • Payment Amount: Your fixed monthly P&I payment
  • Principal: The portion that reduces your loan balance
  • Interest: The cost of borrowing for that period
  • Balance: What you still owe after the payment

Why Interest Is Front-Loaded

Interest is calculated on your remaining balance. Since your balance is highest at the start, so is your interest charge. As you pay down the principal, interest decreases and more of your fixed payment goes toward principal.

Example: On a $320,000 loan at 6.5%, your first payment includes $1,733 in interest and only $290 in principal. By payment #300, it flips to $290 interest and $1,733 principal.

Strategies to Pay Off Faster

1

Make Extra Principal Payments

Even $100/month extra can save years and tens of thousands in interest.

2

Switch to Biweekly Payments

Equals 13 monthly payments per year instead of 12.

3

Apply Windfalls to Principal

Tax refunds, bonuses, or inheritances make a big impact early.

4

Refinance to Shorter Term

15-year loans have lower rates and build equity faster.

Frequently Asked Questions

An amortization schedule is a complete table of periodic loan payments showing the amount of principal and interest that comprise each payment until the loan is paid off. It shows exactly how much of each payment goes toward reducing your debt vs paying interest costs.

Interest is calculated as a percentage of your outstanding balance. Since your balance is highest at the beginning of the loan, so is your interest charge. As you pay down the balance over time, the interest portion decreases and more of your fixed payment goes toward principal.

Extra payments go directly toward reducing your principal balance. This has two effects: (1) your loan pays off faster because there's less to pay down, and (2) you pay less total interest because interest is calculated on a smaller balance. Even small extra payments can save thousands over the life of the loan.

Generally no. Making extra payments reduces your principal and shortens your loan, but doesn't let you skip future payments. Your regular monthly payment is still due each month. Some lenders offer "payment holiday" programs, but these typically add missed payments to the end of your loan with additional interest.

When you refinance, you're essentially starting a new loan. Your amortization schedule resets with the new loan amount (your current balance plus closing costs), new rate, and new term. This is why refinancing to a new 30-year loan can lower payments but increase total interest paid—you're restarting the front-loaded interest cycle.