Amortization Schedule Calculator
Get your monthly payment plus a year-by-year amortization summary showing how each year splits between principal and interest.
How it works
Payment = P·r ÷ (1 − (1+r)^−n), r = APR÷12, n = months · Each month: interest = balance·r, principal = payment − interest · Balance falls by the principal portion
Amortization splits every fixed payment into interest on the current balance and principal that reduces it. Early on the balance is large, so most of the payment is interest; as principal is chipped away the interest share falls and the principal share grows, accelerating toward the end. The yearly summary shows this shift without listing all 360 individual payments.
Worked example
On a $250,000 loan at 6% for 30 years the payment is about $1,499. In year one roughly $14,900 goes to interest and only $3,100 to principal; by year 25 that ratio has flipped, with most of each payment reducing the balance.
Frequently asked questions
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. With a large balance the interest portion dominates, leaving little for principal. As the balance shrinks the interest charge shrinks with it, so later payments retire principal much faster.
What is the difference between the schedule and the total interest?
The schedule shows how each year splits between principal and interest, while total interest is the sum of every interest charge over the loan. Adding up the interest column across all years equals the total interest figure.
Does an extra payment change the schedule?
Yes — any extra principal shifts the whole schedule forward, cutting later interest and shortening the term. This summary assumes only the scheduled payment; use an extra-payment calculator to model additional principal.
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Educational estimate only — not financial, tax or lending advice. Confirm exact figures with your lender.