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Finance · Loans

Amortization Calculator

See exactly how your loan is paid down — with a year-by-year breakdown of principal, interest, and remaining balance. Drag the sliders and every number updates instantly.

$300,000
6.5%
30 yr
Monthly payment
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—
Total paid
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Total interest
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Remaining balance over time

Amortization schedule (yearly)

This table summarizes each year of your loan — how much principal and interest you pay, and your balance at year-end. In the early years most of each payment is interest; the principal portion grows as the balance shrinks.

How amortization works

Flat illustration of a downward-curving line over a baseline with coins beneath it — representing a loan balance being paid down to zero over time.
The balance falls a little faster each year as more of every payment goes to principal.

Amortization is the process of paying off a loan with equal periodic payments. Each payment is split between interest (calculated on the current balance) and principal (the rest). Because the balance falls over time, the interest portion shrinks and the principal portion grows with every payment.

Why early payments are mostly interest

At the start of a loan the balance is at its highest, so the monthly interest charge is large and little of your payment goes to principal. This is why making extra principal payments early in a loan has an outsized effect on total interest.

Tip: One extra payment per year on a 30-year mortgage can cut roughly four to six years off the loan and save tens of thousands in interest.

Using the schedule

Lenders provide an amortization schedule so you can see your payoff trajectory and the interest you'll pay over the life of the loan. Comparing schedules at different rates or terms is one of the clearest ways to understand the true cost of borrowing.

Frequently asked questions

What does amortization mean?
Amortization means spreading a loan into equal payments over time. Each payment covers the interest due that period plus a portion of the principal, so the balance steadily falls to zero by the final payment.
Why is most of my early payment interest?
Interest is charged on your outstanding balance, which is highest at the start. So early payments are mostly interest and little principal. As the balance drops, more of each payment goes to principal.
How can I pay off an amortized loan faster?
Make extra payments toward principal, especially early in the loan. Even small additional amounts reduce the balance that future interest is calculated on, shortening the term and lowering total interest.
Does this calculator handle mortgages?
Yes. The amortization math is identical for mortgages, auto loans, and personal loans. For a mortgage, remember your actual monthly payment may also include property taxes and insurance, which this schedule does not include.
What is the difference between the term and the amortization period?
For most consumer loans they are the same. In some commercial loans the payment is amortized over a long period but the balance is due (balloon) at the end of a shorter term.

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Written & reviewed by Chase Bennett, President of CalcHeadquarters
Every calculator is built from published formulas and authoritative sources, then independently checked for accuracy before it goes live. Last updated July 2026. Read our editorial policy & methodology.