Finance
Amortization Calculator
Enter a loan amount, rate, and term to get the fixed monthly payment plus a full year-by-year amortization schedule — how much of each year's payments go to principal versus interest, and the remaining balance.
Quick answer: An amortized loan has a fixed payment computed as P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1). On a $300,000 loan at 6.5% for 30 years that's $1,896/month — with about 80% of the first year's payments going to interest.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $3,353 | $19,401 | $296,647 |
| 2 | $3,578 | $19,177 | $293,069 |
| 3 | $3,817 | $18,937 | $289,252 |
| 4 | $4,073 | $18,681 | $285,179 |
| 5 | $4,346 | $18,409 | $280,833 |
| 6 | $4,637 | $18,118 | $276,196 |
| 7 | $4,947 | $17,807 | $271,249 |
| 8 | $5,279 | $17,476 | $265,970 |
| 9 | $5,632 | $17,122 | $260,338 |
| 10 | $6,009 | $16,745 | $254,328 |
| 11 | $6,412 | $16,343 | $247,916 |
| 12 | $6,841 | $15,913 | $241,075 |
| 13 | $7,299 | $15,455 | $233,776 |
| 14 | $7,788 | $14,966 | $225,987 |
| 15 | $8,310 | $14,445 | $217,677 |
| 16 | $8,866 | $13,888 | $208,811 |
| 17 | $9,460 | $13,294 | $199,351 |
| 18 | $10,094 | $12,661 | $189,257 |
| 19 | $10,770 | $11,985 | $178,487 |
| 20 | $11,491 | $11,263 | $166,996 |
| 21 | $12,261 | $10,494 | $154,735 |
| 22 | $13,082 | $9,673 | $141,653 |
| 23 | $13,958 | $8,797 | $127,695 |
| 24 | $14,893 | $7,862 | $112,803 |
| 25 | $15,890 | $6,864 | $96,912 |
| 26 | $16,954 | $5,800 | $79,958 |
| 27 | $18,090 | $4,665 | $61,868 |
| 28 | $19,301 | $3,453 | $42,567 |
| 29 | $20,594 | $2,161 | $21,973 |
| 30 | $21,973 | $781 | $0 |
Assumes a fixed-rate, fully-amortizing loan: the payment stays constant while the interest share shrinks and the principal share grows each month. Property taxes, insurance, and PMI are not included, and extra principal payments would shorten the schedule shown here.
How it works
1. The payment is fixed
The standard amortization formula sets one payment that exactly pays off the loan over the term: principal × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate and n the number of payments.
2. The split shifts every month
Each month, interest is charged on the remaining balance and the rest of the payment reduces principal. Early on the balance is large, so most of the payment is interest; the split flips past the midpoint of the loan.
3. Read the schedule
The year-by-year table shows principal paid, interest paid, and ending balance. It's the clearest way to see what extra principal payments would save — every early dollar of principal avoids its interest for the rest of the term.
Frequently asked questions
What is amortization?
Paying off a loan with fixed payments where the interest/principal split shifts over time. Interest accrues on the remaining balance, so early payments are interest-heavy and later ones principal-heavy — the schedule maps that out payment by payment.
Why is so much of my payment interest at the start?
Because interest is charged on the full remaining balance. On $300,000 at 6.5%, the first month accrues about $1,625 in interest against a $1,896 payment — only $271 hits principal. As the balance falls, the interest share falls with it.
Do extra payments change the schedule?
Yes — extra principal skips ahead in the schedule. One extra monthly payment a year on a 30-year mortgage typically pays it off 4–6 years early and saves tens of thousands in interest. Confirm your lender applies extras to principal.