Amortization Calculator

Calculate loan payments with detailed schedules, interest/principal breakdowns, and visual charts. See how extra payments can save you money.

Loan Details

Minimum $1,000
e.g., 6.00 for 6%
Years

Extra Payments

Payment Summary

Principal, Interest, Taxes & Insurance

$1,687.71

Total Interest

$103,788
Over loan term

Total Payments

$303,788
Principal + Interest

Payoff Date

Mar 2039
15 years

Interest Saved

$0
With extra payments
Year Interest Principal Balance
With Extra Payments

Understanding Amortization

How It Works

Each payment on an amortized loan covers both interest and principal. Early payments are mostly interest; later payments are mostly principal.

Formula: M = P[r(1+r)^n]/[(1+r)^n-1]

Where M=monthly payment, P=principal, r=monthly rate, n=number of payments

Extra Payments

Extra payments reduce your principal faster, which reduces total interest and shortens your loan term.

Tip: Even $50 extra monthly can save thousands over a 30-year mortgage.

  • Specify "principal only" when making extra payments
  • Confirm no prepayment penalties with your lender
  • Automate extra payments for consistency

Frequently Asked Questions

An amortization schedule is a table that shows each periodic payment on a loan, breaking down how much goes toward interest versus principal, and showing the remaining balance after each payment. It helps you understand how your payments are applied over time.

Extra payments go directly toward reducing your principal balance. This reduces the total interest you pay over the life of the loan and can significantly shorten your loan term. For example, adding $100 monthly to a $200k mortgage at 6% could save over $24,000 in interest and pay off the loan 2.7 years early.

Principal is the original amount borrowed. Interest is the cost of borrowing that money, calculated as a percentage of the remaining balance. Early in a loan, more of your payment goes to interest; as the principal decreases, more goes toward paying down the principal itself.

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