Amortization Calculator
Loan schedule & extra payments
How to Use the Amortization Calculator
Generate a complete loan payment schedule showing how each payment splits between principal and interest. See how extra payments can save thousands in interest and years off your loan.
Understanding the Schedule
Early payments are mostly interest; later payments are mostly principal. This is why extra payments early in the loan term have the biggest impact on total interest paid.
Extra Payment Strategy
- Even small extra payments add up significantly over time
- Bi-weekly payments (26 half-payments) equal 13 monthly payments per year
- Apply extra payments to principal, not future payments
- Check for prepayment penalties before paying extra
Live Rate Integration
We display current average mortgage rates from Federal Reserve data. Use these as benchmarks when comparing loan offers or considering refinancing.
Frequently Asked Questions
An amortization schedule shows each loan payment broken down into principal and interest over the life of the loan. Early payments are mostly interest; later payments are mostly principal. It helps you see total interest cost and payoff date.
Extra payments reduce principal, cutting total interest and shortening the loan term. $100 extra monthly on a $200,000 mortgage at 7% saves $64,000+ in interest and pays off the loan 5+ years early. Specify extra payments go to principal.
Interest is calculated on the remaining balance. With a large balance early in the loan, interest charges are high. As you pay down principal, less interest accrues each month, and more of your payment reduces principal.
Make extra principal payments, switch to biweekly payments (26 half-payments = 13 monthly payments per year), round up payments, or apply windfalls to principal. Even small extra amounts save significantly over 30 years.
Refinancing to 15 years from 30 increases payments but saves substantial interest. Calculate your break-even point considering closing costs. If you can afford higher payments and plan to stay in the home, shorter terms save money.
Negative amortization occurs when payments do not cover interest, causing the loan balance to grow. This happens with some adjustable-rate mortgages or payment-option loans. Avoid loans where your balance can increase over time.