Amortization Schedule Calculator
See exactly how much of each payment goes to interest vs. principal, year by year.
How to use
- Enter your loan amount, APR and loan term in years.
- Click Calculate.
- See your monthly payment, total interest and the full yearly schedule instantly.
Estimates only — not financial advice. Verify important decisions with a qualified professional.
What Is an Amortization Schedule Calculator?
An amortization schedule breaks a loan down payment by payment — or, as in this calculator, year by year — showing how much of your money goes to interest and how much actually reduces the balance you owe. The split is surprising to most borrowers: in the early years of a long loan, the majority of every payment is interest, and the balance falls painfully slowly. Later, the proportions flip and principal repayment accelerates. Seeing that schedule in advance is the clearest way to understand the true cost of a loan.
Amortization applies to mortgages, auto loans, personal loans, and any other installment loan with fixed payments. The payment stays the same month to month, but its composition changes continuously as the balance shrinks, because interest is charged on whatever balance remains. This calculator summarizes the schedule in yearly totals so you can see the shape of your repayment at a glance — total interest per year, principal per year, and the remaining balance.
How to Use the Amortization Calculator
- Enter the loan amount — the total you are borrowing.
- Enter the APR or interest rate for the loan.
- Enter the term in years over which you will repay it.
- Click Calculate to view the year-by-year breakdown of interest, principal, and remaining balance.
Why Early Payments Are Mostly Interest
Interest each month is calculated on the outstanding balance. At the start, that balance is at its highest, so the interest charge is at its largest, and only what remains of your fixed payment reduces the principal. As the balance falls, the interest portion shrinks and the principal portion grows by the same amount. This is also why extra payments are so powerful early in a loan: every extra dollar of principal removes all the future interest that dollar would have generated for the rest of the term.
Tips for Paying Less Interest
- Even one extra payment a year can cut years off a mortgage and save thousands in interest — check your loan has no prepayment penalty first.
- A shorter term costs more per month but dramatically less overall; compare both schedules before choosing.
- Refinancing only helps if the rate drop is real after fees — compare the total interest of both schedules, not just the payments.
What does amortization mean?
Amortization is the process of paying off a loan through regular installments over time. Each payment covers the interest charged since the last payment plus a portion of the principal, so the balance reaches zero exactly at the end of the term.
Why is my balance barely moving in the first years?
Because interest is charged on the full remaining balance, which is largest at the beginning. On a typical 30-year mortgage, it can take well over a decade before more than half of each payment goes to principal. The schedule from this calculator shows exactly when your own loan crosses that point.
Does this schedule include taxes, insurance, or fees?
No. The schedule covers principal and interest on the loan itself. If your lender collects escrow for taxes and insurance as part of your monthly bill, that amount is charged on top of the payment shown here.
Can I use this for a car loan or personal loan?
Yes. Any fixed-rate installment loan amortizes the same way. Enter the amount, rate, and term, and the yearly breakdown will apply to auto loans, personal loans, and mortgages alike.