Amortization Calculator
Generate complete loan amortization schedules with monthly and yearly breakdowns showing principal, interest, and remaining balance
Loan Summary
Yearly Amortization Summary
| Year | Total Payment | Principal | Interest | Ending Balance |
|---|---|---|---|---|
| Year 1 | $18,962 | $2,794 | $16,168 | $247,206 |
| Year 2 | $18,962 | $2,981 | $15,981 | $244,224 |
| Year 3 | $18,962 | $3,181 | $15,781 | $241,043 |
| Year 4 | $18,962 | $3,394 | $15,568 | $237,649 |
| Year 5 | $18,962 | $3,621 | $15,341 | $234,027 |
| Year 6 | $18,962 | $3,864 | $15,098 | $230,163 |
| Year 7 | $18,962 | $4,123 | $14,839 | $226,041 |
| Year 8 | $18,962 | $4,399 | $14,563 | $221,642 |
| Year 9 | $18,962 | $4,694 | $14,269 | $216,948 |
| Year 10 | $18,962 | $5,008 | $13,954 | $211,940 |
| Year 11 | $18,962 | $5,343 | $13,619 | $206,597 |
| Year 12 | $18,962 | $5,701 | $13,261 | $200,896 |
| Year 13 | $18,962 | $6,083 | $12,879 | $194,813 |
| Year 14 | $18,962 | $6,490 | $12,472 | $188,323 |
| Year 15 | $18,962 | $6,925 | $12,037 | $181,398 |
| Year 16 | $18,962 | $7,389 | $11,573 | $174,009 |
| Year 17 | $18,962 | $7,884 | $11,078 | $166,126 |
| Year 18 | $18,962 | $8,412 | $10,551 | $157,714 |
| Year 19 | $18,962 | $8,975 | $9,987 | $148,739 |
| Year 20 | $18,962 | $9,576 | $9,386 | $139,163 |
| Year 21 | $18,962 | $10,217 | $8,745 | $128,946 |
| Year 22 | $18,962 | $10,902 | $8,061 | $118,044 |
| Year 23 | $18,962 | $11,632 | $7,330 | $106,413 |
| Year 24 | $18,962 | $12,411 | $6,551 | $94,002 |
| Year 25 | $18,962 | $13,242 | $5,720 | $80,760 |
| Year 26 | $18,962 | $14,129 | $4,833 | $66,632 |
| Year 27 | $18,962 | $15,075 | $3,887 | $51,557 |
| Year 28 | $18,962 | $16,084 | $2,878 | $35,473 |
| Year 29 | $18,962 | $17,162 | $1,800 | $18,311 |
| Year 30 | $18,962 | $18,311 | $651 | $0 |
About This Tool
An amortization calculator creates a detailed payment schedule showing exactly how each loan payment is divided between principal and interest over the entire loan term. Understanding your amortization schedule is crucial for mortgages, auto loans, and personal loans, as it reveals the true cost of borrowing and how equity builds over time.
What is Loan Amortization?
Amortization is the process of gradually paying off a loan through regular, equal payments over time. Each payment covers both interest charges and principal reduction. In the early years of a loan, most of each payment goes toward interest because the principal balance is highest. As you continue making payments and the principal decreases, a larger portion of each payment goes toward principal. This is why you build equity slowly at first, then much faster in later years.
Reading Your Amortization Schedule
An amortization schedule shows every payment over your loan's life. For each period, you'll see: the payment number and date, total payment amount (which stays constant for fixed-rate loans), interest portion (which decreases over time), principal portion (which increases over time), and remaining balance. The cumulative totals show how much principal and interest you've paid to date. For a 30-year mortgage, you'll see all 360 payments laid out, making it easy to see exactly where you'll be at any point.
The Front-Loading of Interest
Many borrowers are surprised to learn how much of their early payments go toward interest rather than principal. For example, with a $250,000 mortgage at 6.5% for 30 years, your first payment of $1,580 includes $1,354 in interest and only $226 in principal - that's 86% interest! By year 15, the payment is about half interest and half principal. By year 25, only 24% goes to interest. This front-loading means you build equity slowly at first, which is important to understand if you plan to sell or refinance within the first 5-10 years.
Using Amortization for Financial Planning
Your amortization schedule is valuable for several reasons: it helps you understand how much interest you'll pay over the loan's life (often surprising!), shows exactly when you'll reach 20% equity to cancel PMI, reveals the benefit of making extra principal payments (you can see which future payments you're eliminating), helps you decide between different loan terms by comparing total interest paid, and assists with tax planning by showing deductible interest amounts. Many homeowners use their amortization schedule to plan strategic extra payments, targeting specific high-interest early payments to maximize savings.