Amortization Calculator
View a full loan amortization schedule with optional extra payments.
Monthly Payment
$1,896.20
$1,896.20 base
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,896.20 | $271.20 | $1,625.00 | $299,728.80 |
| 2 | $1,896.20 | $272.67 | $1,623.53 | $299,456.12 |
| 3 | $1,896.20 | $274.15 | $1,622.05 | $299,181.97 |
| 4 | $1,896.20 | $275.64 | $1,620.57 | $298,906.34 |
| 5 | $1,896.20 | $277.13 | $1,619.08 | $298,629.21 |
| 6 | $1,896.20 | $278.63 | $1,617.57 | $298,350.58 |
| 7 | $1,896.20 | $280.14 | $1,616.07 | $298,070.44 |
| 8 | $1,896.20 | $281.66 | $1,614.55 | $297,788.79 |
| 9 | $1,896.20 | $283.18 | $1,613.02 | $297,505.60 |
| 10 | $1,896.20 | $284.72 | $1,611.49 | $297,220.89 |
| 11 | $1,896.20 | $286.26 | $1,609.95 | $296,934.63 |
| 12 | $1,896.20 | $287.81 | $1,608.40 | $296,646.82 |
How Amortization Works
Every payment on a fixed-rate amortizing loan is the same dollar amount, but the split between principal and interest changes over time. Early payments are mostly interest; later payments are mostly principal.
Example: On a $300,000, 30-year mortgage at 7%, your monthly payment is $1,996.
- Month 1: $1,750 goes to interest, $246 to principal
- Month 180 (year 15): $1,340 to interest, $656 to principal
- Month 360 (final): $12 to interest, $1,984 to principal
By year 15, you've paid approximately 45% of your total lifetime interest but reduced your principal by only about 20%. This front-loading of interest is why extra early payments save so much money.
The Power of Extra Payments
On a $300,000, 30-year, 7% mortgage (monthly payment: $1,996):
| Extra Monthly Payment | Interest Saved | Years Saved | Payoff Date |
|---|---|---|---|
| $0 (baseline) | -- | -- | 30 years |
| $100/month | ~$47,000 | ~3 years | ~27 years |
| $200/month | ~$89,000 | ~6 years | ~24 years |
| $500/month | ~$175,000 | ~12 years | ~18 years |
Even $100 extra per month saves meaningful money over the life of the loan. Use the "Extra Monthly Payment" field in the calculator above to see your specific numbers.
The key insight: extra payments reduce the balance faster, which means less interest accrues each month, which means future payments pay down principal even faster -- a compounding benefit that works in your favor. See also our loan calculator for a simpler view of your base payment.
Free Amortization Calculator
An amortization schedule shows exactly how each loan payment is divided between principal and interest over the entire life of the loan. This calculator generates the complete month-by-month schedule for any fixed-rate loan, plus shows the impact of optional extra monthly payments. Extra payments go directly toward principal, reducing both the loan term and total interest paid.
The standard loan payment formula is: M = P[r(1+r)^n] / [(1+r)^n - 1]. Each month, interest is calculated on the remaining balance (Interest = Balance × Monthly Rate), and the rest of the payment goes to principal (Principal = Payment - Interest). As the balance decreases, less goes to interest and more to principal.
The Power of Extra Payments
Even modest extra payments can save thousands in interest. Adding just $100/month to a $300,000, 30-year mortgage at 6.5% saves over $50,000 in interest and pays off the loan nearly 5 years early. This calculator shows the exact savings so you can decide whether extra payments are the best use of your money compared to investing the difference.