What is an amortization schedule?

It is a table detailing each periodic payment on a loan. It shows the specific amount of principal and interest that make up each payment until the loan is fully paid off at the end of its term.

Why is the interest higher at the beginning?

Interest is calculated based on your remaining balance. Since your balance is highest at the start of the loan, the interest charge is also at its peak. As you pay down the principal, there is less balance to charge interest on, allowing more of your payment to go toward the principal.

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Finance

Amortization Calculator - Loan Breakdown

See how your loan balance decreases over time with an amortization schedule. Track principal vs. interest for every year of your loan.

When you make a fixed loan payment, the way your money is distributed changes every single month. In the early stages of a loan, most of your payment goes toward interest, while very little reduces the actual balance. As time goes on, this relationship flips. Our Amortization Calculator provides a detailed yearly breakdown of this process. By visualizing exactly how much 'equity' you are building in your home or car each year, you can better understand the true progress of your debt repayment.

Loan Amount

Interest Rate (%)

Loan Term (Years)

Monthly Payment

$1,264.14

Total interest paid: $255,088.98 over 30 years

Loan Amount$200,000.00

Interest Rate (%)6.5%

Loan Term (Years)30 years

Year	Principal	Interest	Balance
1	$2,235.45	$12,934.18	$197,764.55
2	$2,385.16	$12,784.47	$195,379.39
3	$2,544.90	$12,624.73	$192,834.48
4	$2,715.34	$12,454.29	$190,119.14
5	$2,897.19	$12,272.44	$187,221.95
6	$3,091.22	$12,078.41	$184,130.73
7	$3,298.25	$11,871.39	$180,832.49
8	$3,519.13	$11,650.50	$177,313.35
9	$3,754.82	$11,414.81	$173,558.54
10	$4,006.28	$11,163.35	$169,552.25
11	$4,274.59	$10,895.04	$165,277.66
12	$4,560.87	$10,608.76	$160,716.79
13	$4,866.32	$10,303.31	$155,850.47
14	$5,192.23	$9,977.41	$150,658.24
15	$5,539.96	$9,629.67	$145,118.28
16	$5,910.98	$9,258.65	$139,207.30
17	$6,306.85	$8,862.78	$132,900.45
18	$6,729.23	$8,440.40	$126,171.22
19	$7,179.90	$7,989.73	$118,991.32
20	$7,660.75	$7,508.88	$111,330.57
21	$8,173.81	$6,995.83	$103,156.76
22	$8,721.22	$6,448.41	$94,435.54
23	$9,305.30	$5,864.33	$85,130.24
24	$9,928.49	$5,241.14	$75,201.75
25	$10,593.42	$4,576.21	$64,608.32
26	$11,302.88	$3,866.75	$53,305.44
27	$12,059.86	$3,109.78	$41,245.58
28	$12,867.53	$2,302.10	$28,378.06
29	$13,729.29	$1,440.34	$14,648.77
30	$14,648.77	$520.87	$0.00

How it Works

The calculator generates a month-by-month ledger of your loan. For each period, it calculates (Balance * Monthly Interest Rate) to find the interest portion, subtracts that from your fixed payment to find the principal portion, and reduces the balance accordingly. These values are then aggregated into a yearly summary for easy reading.

Calculation Formula

Interest_mo = Balance × (Rate / 12)

Calculation Examples

1. **Mortgage Example**: On a $300,000 30-year loan at 6%, in Year 1 you pay **$17,800 in interest**.

Why use this tool in your daily life?

Knowledge is equity. Understanding your amortization schedule allows you to see the true cost of your loan and identifies the massive impact that making even one extra principal payment can have on your long-term interest savings.