Loan Amortization Schedule
Break down every loan payment into principal and interest components
Loan Amortization Schedule
Monthly Payment: —
Total Interest: —
Total Cost: —
| # | Payment | Principal | Interest | Balance |
|---|
Frequently Asked Questions
What is loan amortization?
Amortization is the process of paying off a loan through regular payments. Each payment covers interest first, then reduces the principal.
Why does more go to interest at the beginning?
Because interest is calculated on the remaining balance. Early on, the balance is high, so the interest portion of each payment is large.
Can I pay off a loan faster?
Yes. Making extra principal payments reduces the balance faster, saving significant interest over the loan term.
About this tool
This Loan Amortization Schedule shows the whole life of a fixed-rate loan in dollars: the monthly payment, total interest, total cost and a table that lists each payment's principal, interest and the remaining balance. To keep long loans readable, it shows the first five years in full, then year-end rows, and the final year.
A 30-year mortgage is the classic use. Run the numbers and you will see something surprising: after five years of payments on a 6.5% mortgage, only a few percent of the principal is gone. The schedule makes it easy to see when the balance crosses milestones, such as half paid off, and to decide whether refinancing or extra payments make sense.
How to use it
- Enter the Loan Amount.
- Enter the Annual Interest Rate.
- Enter the Loan Term in years.
- Press Generate Schedule.
- Read the payment, total interest and total cost, then scan the table. Rows for the first 60 months, every 12th month after that and the last 12 months are shown.
Tips and common mistakes
- The first year of a 30-year mortgage is overwhelmingly interest. Extra principal payments early have an outsized effect.
- Refinancing resets the schedule, so compare the total interest of the new loan with what remains on the old one.
- Property tax, insurance and PMI are not included in this payment.
- A 15-year term has a much higher payment but typically cuts total interest by more than half.
Frequently asked questions
What does an amortization schedule show?
For each payment it shows the part that pays interest, the part that reduces principal and the balance left afterwards.
Why does so little of my early payment reduce principal?
Interest is charged on the full balance, which is highest at the start, so most of the early payment goes to interest.
Does it include taxes and insurance?
No. It shows principal and interest only. Escrow items such as property tax and homeowner's insurance are extra.
Why are some months missing from the table?
To keep the page quick the table shows the first five years, each year-end after that and the last year. The totals above cover every month.
How can I pay off my loan faster?
Make extra principal payments, pay biweekly or choose a shorter term. Confirm with your lender that extra amounts are applied to principal.
Is the schedule exact?
It is exact for a fixed-rate loan with equal monthly payments. Actual lenders may differ by a few cents due to rounding.