Amortization Calculator

Visualize how your loan is paid off over time with a full amortization schedule. See monthly principal and interest breakdown, and calculate savings from extra payments.

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Result

Monthly Payment

$1,580.17

Payoff: October 2056 (360 payments)

Loan Amount
$250,000.00
Total Interest
$318,861.22
Total Paid
$568,861.22
Interest Ratio
127.5%
Total Interest Paid
$318,861.22
127.5% of loan amount
Total Cost of Loan
$568,861.22
Principal + Interest
Payoff Date
October 2056
360 monthly payments

Principal vs Interest Over Time

Amortization Schedule

MonthDatePaymentPrincipalInterestBalance
1Nov 2026$1,580.17$226.00$1,354.17$249,774.00
2Dec 2026$1,580.17$227.23$1,352.94$249,546.77
3Jan 2027$1,580.17$228.46$1,351.71$249,318.31
4Feb 2027$1,580.17$229.70$1,350.47$249,088.61
5Mar 2027$1,580.17$230.94$1,349.23$248,857.67
6Apr 2027$1,580.17$232.19$1,347.98$248,625.48
7May 2027$1,580.17$233.45$1,346.72$248,392.04
8Jun 2027$1,580.17$234.71$1,345.46$248,157.32
9Jul 2027$1,580.17$235.98$1,344.19$247,921.34
10Aug 2027$1,580.17$237.26$1,342.91$247,684.07
11Sep 2027$1,580.17$238.55$1,341.62$247,445.53
12Oct 2027$1,580.17$239.84$1,340.33$247,205.69
monthdatepaymentprincipalinterestbalance
1Nov 20261580.172261354.17249774
2Dec 20261580.17227.231352.94249546.77
3Jan 20271580.17228.461351.71249318.31
4Feb 20271580.17229.71350.47249088.61
5Mar 20271580.17230.941349.23248857.67
6Apr 20271580.17232.191347.98248625.48
7May 20271580.17233.451346.72248392.04
8Jun 20271580.17234.711345.46248157.32
9Jul 20271580.17235.981344.19247921.34
10Aug 20271580.17237.261342.91247684.07
Showing top 10 rows
Calculation Complete

The Amortization Calculator generates a detailed payment schedule for any fixed-rate loan (mortgage, auto, personal, student loan). It shows exactly how much of each payment goes toward principal and interest, how your balance decreases over time, and the impact of extra payments. Use this to understand loan costs, plan payoff strategies, and save on interest.

Enter the loan amount, annual interest rate, and loan term in years. Optionally, add an extra monthly payment to see how additional principal payments accelerate your payoff and reduce total interest. Select your loan start date and click Calculate to view your monthly payment, full amortization schedule, and a breakdown of principal versus interest over time.

Examples

$250,000 loan at 6.5% for 30 years

A $250,000 loan at 6.5% annual interest over 30 years results in a monthly payment of approximately $1,580. You would pay about $318,861 in total interest over the life of the loan, bringing the total cost to $568,861.

$250,000 loan with $200 extra monthly payment

Adding $200 per month in extra payments to the same loan reduces the total interest to approximately $207,325, saving over $111,000 in interest and paying off the loan about 7 years and 9 months early.

$150,000 loan at 5% for 15 years

A $150,000 loan at 5% interest over 15 years has a monthly payment of about $1,186. Total interest paid is approximately $63,546, significantly less than a 30-year term due to the shorter repayment period.

Frequently Asked Questions

What is an amortization schedule?
An amortization schedule is a complete table showing each monthly payment broken down into principal and interest, along with the remaining loan balance. Early in the loan, most of each payment goes toward interest. Over time, a larger portion goes toward principal.
How do extra payments reduce total interest?
Extra payments go directly toward reducing the principal balance. Since interest is calculated on the remaining balance each month, a lower balance means less interest accrues. This creates a compounding savings effect that can save tens of thousands of dollars and shorten the loan term significantly.
Why does more interest get paid early in the loan?
Interest is calculated as a percentage of the remaining balance. At the start of a loan, the balance is highest, so the interest portion of each payment is largest. As you pay down the principal over time, the interest portion decreases and the principal portion increases.
What happens if I refinance during the loan?
Refinancing replaces your current loan with a new one, typically at a different interest rate or term. This resets your amortization schedule. Use this calculator to compare your current remaining payments against a potential refinance to see if the interest savings justify any closing costs.
Is it better to make extra payments or invest the money?
It depends on the interest rate of your loan versus expected investment returns. If your loan rate is higher than your expected after-tax investment return, extra payments may save you more. If your investment returns exceed the loan rate, investing may be more beneficial. Consider your risk tolerance and tax situation as well.

Related Information

An amortization calculator is essential for understanding the true cost of any fixed-rate loan, whether it is a mortgage, auto loan, personal loan, or student loan. By examining the amortization schedule, you can see exactly how each payment is allocated and make informed decisions about extra payments, refinancing, or choosing between different loan terms. Use alongside our Mortgage Calculator, Loan Calculator, and Compound Interest Calculator for comprehensive financial planning.

Sources

  1. Amortization calculator — the fixed-payment formula and its derivation — Wikipedia
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Quick Tips

  • •Pay extra principal early in the loan when most of your payment goes to interest. Even small extra amounts save significant interest.
  • •If you have high-interest debt (credit cards, personal loans), prioritize paying those off before making extra mortgage payments.
  • •Bi-weekly payments (every 2 weeks) instead of monthly result in 26 half-payments per year, equivalent to 13 monthly payments—paying off loans faster.
  • •Understand your loan terms before refinancing. Break-even analysis ensures that interest savings justify closing costs.
  • •Review your amortization schedule when considering loan modification, forbearance, or payoff strategies.