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Loan Amortization Schedule

Amortization Calculator

See the monthly payment, lifetime interest, and a year-by-year breakdown of principal versus interest for any fixed-rate loan — and how extra monthly payments shorten it.

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Works for mortgages, auto loans, personal loans — any fixed-rate amortizing loan

How Amortization Works

An amortizing loan charges interest only on what you still owe. Each payment first covers that month's interest (balance × monthly rate); the remainder reduces the balance. Because the payment is fixed while the balance falls, the interest share shrinks every month — that's why a 30-year mortgage builds equity slowly at first and quickly at the end. Roughly half the principal of a 30-year loan is still owed after year 19 or 20 at today's rates.

Payment and Lifetime Interest by Rate ($300,000, 30 Years)

RateMonthly P&ITotal interest (30 yr)
5.0%$1,610$279,767
5.5%$1,703$313,212
6.0%$1,799$347,515
6.5%$1,896$382,633
7.0%$1,996$418,527
7.5%$2,098$455,152

A single percentage point of rate on this loan changes lifetime interest by roughly $70,000 — which is why rate shopping and points math matter.

Extra Payments: Small Amounts, Outsized Effect

Extra principal payments are most powerful early in the loan, when every prepaid dollar would otherwise accrue interest for decades. One extra $200/month on the $300,000 example cuts about 6 years off the term; a single annual lump sum of $2,400 does nearly the same. If you're choosing between prepaying and investing, compare the loan's rate against your expected after-tax return — prepaying a 6.5% loan is a guaranteed 6.5% return. See also our Mortgage Payoff Calculator for lump-sum payoff scenarios.

Frequently Asked Questions

How is a loan payment calculated?
The fixed monthly payment is M = P·r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r the monthly rate (APR ÷ 12), and n the number of months. For $300,000 at 6.5% over 30 years: r = 0.0054167, n = 360, giving M ≈ $1,896 for principal and interest.
Why does so little of my early payment go to principal?
Interest each month equals the outstanding balance times the monthly rate. Early on the balance is at its largest, so interest eats most of the payment — on a $300,000 6.5% loan, the first payment is about $1,625 interest and only $271 principal. The split flips in the later years as the balance shrinks.
How much interest will I pay over the life of a loan?
Total interest = monthly payment × number of payments − principal. The 30-year $300,000 example at 6.5% costs about $382,600 in interest — more than the house principal itself. Shorter terms cut this dramatically: the same loan over 15 years (payment ≈ $2,613) costs about $170,400 in interest.
What do extra monthly payments actually save?
Every extra dollar goes straight to principal, which removes all the future interest that dollar would have accrued. Adding $200/month to the $300,000 6.5% example pays the loan off roughly 6 years early and saves on the order of $100,000 in interest. Use the extra-payment field to see exact numbers for your loan.
Does this include taxes, insurance, or PMI?
No — the schedule covers principal and interest (P&I) only. Property tax, homeowners insurance, PMI, and HOA fees are separate escrow items that don't amortize. Your total monthly housing cost is P&I plus those.
Is amortization different for auto and personal loans?
The math is identical for any fixed-rate fully-amortizing loan — only the numbers differ. A $30,000 auto loan at 7% for 5 years amortizes with the same formula (payment ≈ $594). Watch for lenders quoting simple-interest daily accrual; those track slightly differently if you pay on irregular dates.
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Disclaimer: This calculator is for general educational purposes only and is not financial, investment, tax, or legal advice. Results are estimates; consult a qualified professional before making financial decisions.