Loan Amortization Calculator
See your monthly payment plus a full year-by-year amortization schedule showing principal, interest and balance.
Updated 25 Jun 2026 · Free · No sign-up
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The schedule groups payments by year. Early on, most of each payment is interest; over time, more goes to principal.
Every fixed-rate loan is paid off through amortization — equal monthly payments that gradually shift from mostly interest to mostly principal. This loan amortization calculator shows your monthly payment and builds a full year-by-year schedule, so you can see exactly how your balance falls over time and how much of your money goes to interest versus principal each year. It works for mortgages, auto loans, personal loans, and student loans alike.
What amortization means
When you make a fixed monthly payment, the lender first takes the interest owed on the current balance, and whatever’s left reduces the principal. Because your balance is largest at the start, early payments are mostly interest and barely dent the principal. As the balance shrinks, less interest accrues, so more of each payment chips away at the principal — the process accelerates toward the end. The schedule below makes this front-loaded interest pattern clear.
The formula
The fixed payment comes from the standard amortization formula M = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly rate, and n is the number of months. The schedule is then built month by month: each month’s interest is the balance × r, the rest of the payment reduces the balance, and the calculator sums these into yearly totals.
A worked example
On a $250,000 loan at 6.5% over 30 years, the monthly payment is about $1,580. In year one, roughly $16,100 of your payments goes to interest and only about $2,900 to principal — over five times more interest than principal. By the final years that flips entirely. Across the full loan you’d pay around $319,000 in interest on top of the $250,000 borrowed, which is exactly why seeing the schedule (and considering extra payments) matters.
Using the schedule
The year-by-year view helps you understand where you are in a loan, how much equity you’re building, and the real cost of borrowing over time. For home loans specifically, pair this with our mortgage calculator (which adds taxes, insurance, and PMI) and read 15-year vs 30-year mortgage to see how the term reshapes the entire schedule. Considering a refinance? Our guide on whether refinancing is worth it walks through the math.
Frequently asked questions
What is loan amortization?
Amortization is paying off a loan through equal monthly payments that cover interest plus some principal. Early payments are mostly interest because the balance is largest then; as the balance falls, more of each payment goes to principal. The loan is fully paid off by the end of the term.
Why is so much of my early payment interest?
Because interest is charged on your current balance, which is highest at the start. So early on, most of your payment covers interest and only a little reduces principal. As the balance shrinks over time, less interest accrues and more of each payment goes toward principal.
How can I pay off a loan faster?
Make extra payments toward principal, especially early in the loan when payments are most interest-heavy. Because that extra money goes straight to principal, it removes future interest and shortens the term. Even small additional principal payments in the early years can save thousands over a long loan.
Does this work for any loan?
Yes — it works for any fixed-rate amortizing loan, including mortgages, auto loans, personal loans, and student loans. Just enter the loan amount, interest rate, and term. For mortgages, also use our mortgage calculator to include taxes, insurance, and PMI. This tool is for estimates only.