Amortization Calculator
Full amortization schedule for any loan: yearly principal, interest and remaining balance.
How it works
Each month: interest = balance × r, principal = payment − interest
The payment stays constant, but its split shifts: early on the balance is large so interest eats most of the payment; as the balance falls, more of each payment retires principal. That is why extra payments early save the most.
Worked example
On $250,000 at 6% for 30 years the payment is $1,498.88. In year 1 about $14,900 goes to interest and only $3,086 to principal; by year 30 the split has fully reversed.
Frequently asked questions
Why does the first year pay so little principal?
Interest is charged on the outstanding balance, which is at its maximum at the start. The fixed payment only has what is left after interest to reduce the balance.
What does one extra payment a year do?
On a typical 30-year mortgage it cuts roughly 4–5 years off the term and saves tens of thousands in interest.
Is this the same for car and personal loans?
Yes — any fixed-rate amortizing loan follows this exact schedule shape, just with smaller numbers and shorter terms.
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This is an educational estimate, not financial advice. Lenders use their own rounding, fees and credit terms — confirm exact figures with your lender or a licensed advisor.