Amortization Calculator
See how every payment splits between principal and interest, month by month.
Amortization is how a fixed loan is paid off through equal payments, with each one split between interest on the current balance and principal that reduces it. Early payments are mostly interest; later ones are mostly principal. On a $250,000 loan at 6.5% over 30 years the payment is about $1,580. The schedule below shows every month and the falling balance.
These results are estimates for informational purposes only and are not financial, tax, or legal advice. Your actual figures from a lender or the IRS may differ. Consult a qualified professional before making decisions.
Estimated monthly payment
$1,580.17
Principal vs. interest paid per year
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $2,794 | $16,168 | $247,206 |
| 2 | $2,981 | $15,981 | $244,224 |
| 3 | $3,181 | $15,781 | $241,043 |
| 4 | $3,394 | $15,568 | $237,649 |
| 5 | $3,621 | $15,341 | $234,027 |
| 6 | $3,864 | $15,098 | $230,163 |
| 7 | $4,123 | $14,839 | $226,041 |
| 8 | $4,399 | $14,563 | $221,642 |
| 9 | $4,694 | $14,269 | $216,948 |
| 10 | $5,008 | $13,954 | $211,940 |
| 11 | $5,343 | $13,619 | $206,597 |
| 12 | $5,701 | $13,261 | $200,896 |
| 13 | $6,083 | $12,879 | $194,813 |
| 14 | $6,490 | $12,472 | $188,323 |
| 15 | $6,925 | $12,037 | $181,398 |
| 16 | $7,389 | $11,573 | $174,009 |
| 17 | $7,884 | $11,078 | $166,126 |
| 18 | $8,412 | $10,550 | $157,714 |
| 19 | $8,975 | $9,987 | $148,739 |
| 20 | $9,576 | $9,386 | $139,163 |
| 21 | $10,217 | $8,745 | $128,946 |
| 22 | $10,902 | $8,061 | $118,044 |
| 23 | $11,632 | $7,330 | $106,413 |
| 24 | $12,411 | $6,551 | $94,002 |
| 25 | $13,242 | $5,720 | $80,760 |
| 26 | $14,129 | $4,833 | $66,632 |
| 27 | $15,075 | $3,887 | $51,557 |
| 28 | $16,084 | $2,878 | $35,473 |
| 29 | $17,162 | $1,800 | $18,311 |
| 30 | $18,311 | $651 | $0 |
About the Amortization Calculator
Amortization is the process of retiring a loan with a series of equal payments, each one part interest and part principal. The payment stays the same every month, but its makeup shifts. At the start, interest is charged on the full balance, so most of the payment goes to interest and little to principal. As the balance falls, the interest share shrinks and principal takes over, which is why progress feels slow in the early years and accelerates later. This calculator builds the complete schedule so you can see that crossover point and track the balance down to zero. The schedule is also where the value of extra payments shows up. Because principal paid early removes interest from every month that follows, an additional amount in year one saves far more than the same amount in year twenty. Switch between the yearly summary and the full month-by-month view below, and use it to check a lender's figures or plan a faster payoff.
Frequently asked questions
What is an amortization schedule?+
It is a table listing every payment over the life of a loan, showing how much of each goes to interest, how much to principal, and the remaining balance afterward. It lets you see exactly how the loan is paid down.
Why is early payment mostly interest?+
Interest is charged on the outstanding balance, which is largest at the beginning. So in the early months the interest portion dominates and principal is small. The balance has to fall before principal becomes the bigger share of a fixed payment.
How do extra payments affect amortization?+
Any amount paid above the scheduled payment goes straight to principal, which lowers the balance that future interest is charged on. Extra payments early in the loan remove the most interest and pull the payoff date forward.
Do all loans amortize the same way?+
Most fixed-rate installment loans amortize with equal payments, as shown here. Interest-only loans, balloon loans, and variable-rate loans follow different patterns. This schedule assumes a fixed rate and full amortization over the term.