See exactly how your loan is paid off. This free amortization calculator shows your monthly payment, total interest, and a complete year-by-year schedule of how each payment splits between principal and interest.
| Year | Principal paid | Interest paid | Balance |
|---|
Results update automatically as you type. Estimates only — confirm exact figures with your lender.
How the Amortization Calculator Works
This amortization calculator breaks a fixed-rate loan down into its monthly payment and shows, year by year, how much of that payment goes toward interest versus paying down the principal balance.
Formula: Monthly payment M = P × [r(1+r)^n] / [(1+r)^n − 1]. Each month: Interest = Remaining balance × r; Principal = M − Interest; new Remaining balance = old balance − Principal
- M — the fixed monthly payment
- P — original loan amount
- r — monthly interest rate (APR ÷ 12)
- n — total number of monthly payments (term in years × 12)
- Remaining balance — the amount still owed, which shrinks each month as principal is paid
Example Scenarios
| Loan Amount | Interest Rate | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $200,000 | 6% | 30 yrs | $1,199 | $231,700 |
| $350,000 | 6.5% | 30 yrs | $2,212 | $446,300 |
| $25,000 | 5% | 5 yrs | $472 | $3,310 |
| $400,000 | 4.5% | 15 yrs | $3,060 | $150,800 |
| $150,000 | 7% | 20 yrs | $1,163 | $129,100 |
Amortization Calculator FAQ
Why is most of my early payment interest instead of principal?
Interest is calculated on your remaining balance each month, and early on that balance is at its highest, so a larger share of each payment goes to interest. As the balance shrinks over time, more of each fixed payment goes toward principal — this shift is what the year-by-year schedule shows.How can I pay off my loan faster using this calculator?
This calculator shows the standard schedule at your entered term; to see the effect of paying it off sooner, try shortening the term field and compare the resulting payment and total interest. A shorter term forces a higher required monthly payment but cuts total interest substantially.Does the year-by-year schedule show every single monthly payment?
No — it summarizes principal paid, interest paid and remaining balance for each year of the loan rather than listing all 360 monthly payments on a 30-year loan. This keeps the schedule readable while still showing how the principal-and-interest split shifts over the life of the loan.Why does my total interest look so much bigger on a 30-year loan versus a 15-year loan?
A longer term spreads the same loan balance over more payments, which lowers each monthly payment but keeps interest accruing on a larger remaining balance for far longer. Even at the same interest rate, a 30-year loan typically costs well over double the total interest of the same loan at 15 years.Is this the same as a mortgage amortization schedule?
Yes — the math is identical for any fixed-rate installment loan, whether it’s a mortgage, auto loan or personal loan, since it’s based only on loan amount, interest rate and term. Enter your mortgage’s numbers here to see the same year-by-year principal-and-interest breakdown a lender would generate.What does “balance” mean in the schedule’s last column?
It’s the remaining principal still owed on the loan at the end of that year, after that year’s payments are applied. It should decline every year and reach zero, or very close to it, in the final year of the loan term.Related Calculators
For a mortgage-specific view with property tax and insurance factored in, try the mortgage calculator. The general loan calculator works well for quick payment estimates on any installment loan, and if you want to see how extra payments shorten your payoff timeline, the extra mortgage payment calculator models that directly.