Amortization Calculator
See a year-by-year amortization schedule for any fixed-rate loan: how much of each year's payments goes to principal versus interest, and the balance remaining at the end of every year. Enter a loan amount, rate, and term.
Amortization schedule
Example: $320,000 at 6.5% for 30 years ≈ $2,022.62/month.
Reading the schedule
Take the worked example: a $320,000 loan at 6.5% over 30 years. The monthly payment is $2,022.62, but the split shifts dramatically over time. In year 1 you pay about $20,695 in interest and only $3,577 toward principal; by the final year almost the entire payment is principal and the balance reaches $0. Across all 30 years you pay $408,142 in interest on top of the $320,000 borrowed. These numbers are generated by the same tested engine as the calculator.
Why the front-loading matters
Because interest is charged on the balance, and the balance barely moves in the early years, most of your first decade of payments is interest. This is why refinancing or selling early in a loan builds little equity, and why extra principal payments made early save far more than the same payments made late — each early dollar removes interest on every month that follows.
Frequently asked questions
What is amortization?
The process of paying off a loan with fixed payments over time. Each payment covers the interest owed that month first, and the rest reduces the principal. Because the balance falls slowly at first, early payments are mostly interest and later ones are mostly principal.
Why does the schedule flip from interest to principal?
Interest is charged on the outstanding balance. At the start the balance is near the full loan, so most of the fixed payment is interest. As principal is chipped away, less interest accrues and more of each payment attacks the balance — the crossover accelerates near the end.
How can I pay less total interest?
Choose a shorter term (higher payment, far less interest) or add extra principal each month. Even a small recurring extra payment early in the loan removes a disproportionate amount of interest because it shrinks the balance that all future interest is charged on.
Does this work for auto and personal loans too?
Yes — any fixed-rate, fully amortizing loan follows the same math. Enter the loan amount, rate, and term. For a payment-only view without the schedule, use the Loan Calculator.
Not financial advice: a general educational estimate. Your actual schedule depends on the exact rate, payment timing, and any fees. Values are processed locally in your browser and never transmitted. See the methodology page.