Loan Amortization Calculator

Amortization is the process of paying off a loan through regular payments over time. Each payment is split between principal (reducing your debt) and interest (the cost of borrowing). Early payments are mostly interest; later payments are mostly principal.

Interest is calculated on the outstanding balance. Since your balance is highest at the start, the interest portion is largest initially. As you pay down principal, less of each payment goes to interest. In year 1 of a 30-year mortgage, 70-80% may go to interest.

Extra payments go directly to principal, reducing your balance faster. This means less interest over the life of the loan and earlier payoff. Even $100/month extra on a $250K loan at 6.5% can save $40K+ in interest and pay off 5+ years early.

An amortization schedule is a table showing each payment's breakdown between principal and interest, plus the remaining balance after each payment. It lets you see exactly where your money goes over the entire loan term.

Yearly view shows the big picture—total principal and interest paid each year. Monthly view shows each individual payment. Use yearly for planning, monthly for detailed tracking or if you're making extra payments and want to see exact impact.

EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P = principal, r = monthly rate (annual rate ÷ 12 ÷ 100), n = total payments. This formula ensures equal payments that fully pay off the loan by the end of the term.

The earlier, the better. Extra payments in year 1 have the biggest impact because they reduce principal when the balance (and therefore interest charges) is highest. A $1,000 extra payment in year 1 saves more interest than the same payment in year 20.

Any extra payment helps. Pay extra when you can—tax refunds, bonuses, etc. Even one extra payment per year (making 13 instead of 12) can shave years off a 30-year mortgage and save tens of thousands in interest.

Yes, dramatically. Higher rates mean more of each payment goes to interest, especially early on. At 3%, about 50% of your first payment is principal; at 8%, only about 30% is principal. Lower rates = faster equity building.

Yes! Click the Download button to save your complete amortization schedule as a text file. It includes all loan details, summary statistics, and the yearly breakdown for your records or to share with your lender.