Finance

Amortization Calculator

Generate a full month-by-month amortization schedule showing principal, interest, and remaining balance. See how extra payments save you time and money.

Quick Answer

A $250,000 mortgage at 6.5% for 30 years has a monthly payment of $1,580. Over the life of the loan, you will pay $319,000 in interest — more than the original loan. Adding just $200/month extra cuts 7 years off the loan and saves over $90,000 in interest.

Loan Details

$
%
years
$
Monthly Payment
$1,580.17
principal & interest only | 30 yr term

Standard Payments

Monthly Payment$1,580.17
Total Interest$318,862
Total Paid$568,862
Payoff Time30 yr

Interest vs. Principal Over Time

Yr 1
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Yr 7
Yr 10
Yr 13
Yr 16
Yr 19
Yr 22
Yr 25
Yr 28
Yr 30
PrincipalInterest

Amortization Schedule

#PaymentPrincipalInterestBalance
1$1,580.17$226.00$1,354.17$249,774.00
2$1,580.17$227.23$1,352.94$249,546.77
3$1,580.17$228.46$1,351.71$249,318.31
4$1,580.17$229.70$1,350.47$249,088.61
5$1,580.17$230.94$1,349.23$248,857.67
6$1,580.17$232.19$1,347.98$248,625.48
7$1,580.17$233.45$1,346.72$248,392.03
8$1,580.17$234.71$1,345.46$248,157.32
9$1,580.17$235.98$1,344.19$247,921.34
10$1,580.17$237.26$1,342.91$247,684.08
11$1,580.17$238.55$1,341.62$247,445.53
12$1,580.17$239.84$1,340.33$247,205.69
13$1,580.17$241.14$1,339.03$246,964.55
14$1,580.17$242.45$1,337.72$246,722.10
15$1,580.17$243.76$1,336.41$246,478.34
16$1,580.17$245.08$1,335.09$246,233.26
17$1,580.17$246.41$1,333.76$245,986.85
18$1,580.17$247.74$1,332.43$245,739.11
19$1,580.17$249.08$1,331.09$245,490.03
20$1,580.17$250.43$1,329.74$245,239.60
21$1,580.17$251.79$1,328.38$244,987.81
22$1,580.17$253.15$1,327.02$244,734.66
23$1,580.17$254.52$1,325.65$244,480.14
24$1,580.17$255.90$1,324.27$244,224.24
Disclaimer: This calculator provides estimates for educational purposes only. Actual loan terms, payments, and schedules depend on your lender, credit profile, fees, and specific loan agreement. Interest calculations assume fixed-rate, fully amortizing loans. Consult a qualified financial advisor or your lender for personalized advice.

About This Tool

The Amortization Calculator generates a complete month-by-month payment schedule for any fixed-rate loan. Enter your loan amount, interest rate, term, and optional extra monthly payment to see exactly how each dollar is split between principal and interest. The printable schedule makes it easy to track your payoff progress.

What Is Amortization?

Amortization is the process of spreading a loan into a series of fixed payments over time. Each payment covers both interest and principal. In the early years of a mortgage, the majority of each payment goes toward interest. As the principal decreases, more of each payment goes toward paying down the loan. This is why extra payments in the early years have the biggest impact on total interest savings.

How Extra Payments Work

Extra payments go directly toward reducing your principal balance. This means less interest accrues in future months, creating a compounding savings effect. On a $250,000 mortgage at 6.5% for 30 years, paying just $200 extra per month saves over $90,000 in interest and pays off the loan 7 years early. Even irregular extra payments (like applying a tax refund once a year) can save tens of thousands.

Mortgage vs. Other Loan Amortization

While this calculator is most commonly used for mortgages, the same amortization math applies to any fixed-rate installment loan — auto loans, personal loans, student loans, and more. Simply enter the loan details and the calculator generates the appropriate schedule. Variable-rate loans are not accurately represented since this tool assumes a fixed interest rate throughout the term.

Reading Your Amortization Schedule

The schedule shows each monthly payment broken into principal (reduces what you owe) and interest (the lender's profit). The balance column shows your remaining loan amount after each payment. Watch how the interest portion shrinks over time while the principal portion grows. This "crossover point" typically happens around the midpoint of your loan term, and it is where your equity growth accelerates.

Frequently Asked Questions

How is the monthly payment calculated?
The calculator uses the standard amortization formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate / 12), and n is the total number of payments. This formula ensures each payment is the same amount and the loan is fully paid off by the end of the term.
Why is so much of my early payment going to interest?
Interest is calculated on the remaining balance each month. When your balance is high (early in the loan), the interest charge is large, leaving less of your fixed payment for principal. As you pay down the balance, interest charges shrink and more goes toward principal. For a $250,000 loan at 6.5%, your first payment has about $1,354 in interest and only $226 in principal.
Are extra payments applied to principal or interest?
Extra payments go entirely toward reducing your principal balance (assuming your lender applies them correctly — always confirm with your lender). This reduces future interest charges since interest is calculated on the remaining balance. Make sure to specify that extra payments should be applied to principal, not advanced toward future payments.
Can I use this for an auto loan or personal loan?
Yes. The amortization formula is the same for any fixed-rate installment loan. Enter the loan amount, annual interest rate, and term in years. For an auto loan of $30,000 at 6% for 5 years, enter 30000, 6, and 5. The calculator will generate the correct month-by-month schedule.
Does this account for property taxes and insurance?
No. This calculator shows principal and interest only (P&I). Your actual monthly mortgage payment may include property taxes, homeowners insurance, PMI, and HOA fees (often called PITI). Use our Mortgage Calculator for a more complete monthly payment estimate that includes these additional costs.

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