Amortization Calculator
The Amortization Calculator builds a full year-by-year payment schedule for any fixed-rate loan, showing exactly how much of each payment goes toward principal versus interest.
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|
How amortization works
Each monthly payment is the same fixed amount, but the split between principal and interest changes over time. Early payments are mostly interest (since the balance is high); later payments are mostly principal. Interest for a given month is calculated as:
The rest of the fixed payment reduces the principal balance for the next month.
Why this matters
Understanding amortization helps you see the real cost of extending a loan term, and shows how extra principal payments early on can save significant interest. Pair this with the Mortgage Calculator or Loan Calculator to explore different scenarios.