Total: 180 months
Applied to principal each month. Lowers total interest and can pay off early.
Total of 180 Payments
$303,788
Total Interest
$103,788
Payoff Date
February 2041
| # | Date | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | Mar 2026 | $1,000.00 | $687.71 | $199,312 |
| 2 | Apr 2026 | $996.56 | $691.15 | $198,621 |
| 3 | May 2026 | $993.11 | $694.61 | $197,927 |
| 4 | Jun 2026 | $989.63 | $698.08 | $197,228 |
| 5 | Jul 2026 | $986.14 | $701.57 | $196,527 |
| 6 | Aug 2026 | $982.63 | $705.08 | $195,822 |
| 7 | Sep 2026 | $979.11 | $708.60 | $195,113 |
| 8 | Oct 2026 | $975.57 | $712.15 | $194,401 |
| 9 | Nov 2026 | $972.01 | $715.71 | $193,685 |
| 10 | Dec 2026 | $968.43 | $719.29 | $192,966 |
| 11 | Jan 2027 | $964.83 | $722.88 | $192,243 |
| 12 | Feb 2027 | $961.22 | $726.50 | $191,517 |
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $8,483 | $11,769 | $191,517 |
| 2 | $9,007 | $11,246 | $182,510 |
| 3 | $9,562 | $10,690 | $172,948 |
| 4 | $10,152 | $10,101 | $162,796 |
| 5 | $10,778 | $9,475 | $152,018 |
| 6 | $11,443 | $8,810 | $140,575 |
| 7 | $12,149 | $8,104 | $128,427 |
| 8 | $12,898 | $7,355 | $115,529 |
| 9 | $13,693 | $6,559 | $101,836 |
| 10 | $14,538 | $5,715 | $87,298 |
| 11 | $15,435 | $4,818 | $71,863 |
| 12 | $16,387 | $3,866 | $55,477 |
| 13 | $17,397 | $2,855 | $38,080 |
| 14 | $18,470 | $1,782 | $19,609 |
| 15 | $19,609 | $643 | $0 |
What Is Loan Amortization?
Amortization is the process of paying off a loan with fixed, regular payments over time. Each payment is split into interest—the cost of borrowing—and principal—the amount that reduces what you owe. At the start, most of the payment goes to interest; as the balance falls, more goes to principal. An amortization schedule shows this split for every payment until the balance reaches zero.
This calculator is for fixed-rate, fully amortizing loans: mortgages, auto loans, personal loans, and similar. It does not apply to interest-only loans, balloon payments, or revolving credit like credit cards.
How Extra Payments Help
When you pay extra toward principal, you lower the balance faster. That cuts future interest and can shorten the loan. Even a small extra amount each month can save a lot over the life of the loan. Use the optional extra payment field to see the new payoff date and total interest saved. Check your loan contract for prepayment penalties before paying ahead.
Uses for an Amortization Schedule
- Planning: See how much goes to interest vs. principal over time and whether refinancing or extra payments make sense.
- Taxes: For eligible loans (e.g. mortgages in some countries), the interest portion may be deductible; the schedule shows interest by year.
- Comparing loans: Compare total interest and payoff timing across different rates and terms.
- Negotiating: Understand the true cost of a loan before signing.
Frequently Asked Questions
- What is an amortization schedule?
- An amortization schedule is a table of each payment on a loan. For every period it shows the interest due, the amount applied to principal, and the remaining balance. In the early years, most of the payment is interest; later, most is principal.
- How do extra payments affect my loan?
- Extra amounts are applied to principal. That reduces the balance sooner, lowers future interest, and can pay off the loan early. Even small extra monthly payments can noticeably reduce total interest and shorten the term.
- Does this work for car loans and personal loans?
- Yes. The calculator works for any fixed-rate, fully amortizing loan: mortgages, auto loans, personal loans, student loans, and the like. It is not designed for interest-only loans, balloon loans, or revolving credit such as credit cards.
- What is the amortization formula?
- The monthly payment is 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 number of payments. Each period, interest = balance × r and principal = payment − interest.