About the Amortization Schedule
See exactly how a fixed-rate loan is paid off, month by month: how much of each payment goes to interest, how much reduces the balance, and what's left after every payment. It works for mortgages, car loans, student loans and personal loans.
Add an extra monthly payment to see how much interest and time it saves, and download the full schedule as a CSV file for a spreadsheet.
How it works
A fixed-rate loan has the same payment every month. The payment is set so that, after the last month, the balance is exactly zero. Early on most of each payment is interest, because interest is charged on a large balance; as the balance falls, more of each payment goes to the principal.
Each month the calculator charges one month's interest on the balance (the yearly rate divided by 12), rounds it to the cent, takes it out of the payment, and uses the rest to reduce the balance. The final payment is adjusted to clear the balance exactly, so the principal column always adds up to the amount borrowed.
payment = P × r ÷ (1 − (1 + r)^−n) P = amount borrowed, r = yearly rate ÷ 12, n = number of monthly payments interest this month = balance × r principal this month = payment − interest
Assumptions and limits
- Interest is charged monthly at a fixed rate. Loans with daily interest, variable rates, payment holidays or fees will differ.
- Taxes, insurance and escrow amounts that some mortgage payments include aren't part of this calculation.
- Amounts are rounded to the cent, halves up. Your lender's statement may differ by a few cents.
Worked examples
A $200,000 mortgage at 6% for 30 years
The monthly payment is $1,199.10. In the first month $1,000.00 is interest and only $199.10 reduces the balance. Over 360 payments the total interest is $231,677.04, more than the amount borrowed.
Paying an extra $200 a month on the same mortgage
With $1,399.10 a month the loan is paid off after 252 payments, 9 years early, and the total interest falls to $151,876.18, a saving of $79,800.86.
A $25,000 car loan at 7% over 5 years
The payment is $495.03 and the total interest is $4,701.82. Adding $100 a month clears it in 49 months with $3,762.80 of interest.
How to use the Amortization Schedule
- Enter the loan. Amount, yearly interest rate and the term in years and months.
- Add an extra payment if you like. See the interest and months it saves.
- Read or download the schedule. Show all months on screen or download a CSV.
Frequently asked questions
What is an amortization schedule?
A table of every payment on a loan, showing how much goes to interest, how much repays the amount borrowed, and the balance left afterwards. It shows why the balance falls slowly at first and faster near the end.
Why is most of my early payment interest?
Interest is charged on the balance you still owe. At the start the balance is at its highest, so the interest is too; each payment reduces the balance a little, so next month's interest is slightly smaller and more goes to principal.
How much do extra payments save?
Extra payments go straight to the balance, so every later month is charged less interest. On a $200,000, 30-year loan at 6%, an extra $200 a month saves about $79,800 of interest and 9 years of payments.
Why doesn't this match my lender's figures exactly?
Lenders may charge interest daily rather than monthly, round the payment up, or include taxes and insurance in the payment. Differences of a few cents a month are normal; bigger gaps usually mean a different rate or fees.
Can I use it for a 0% loan?
Yes. With a 0% rate the loan is simply divided into equal monthly payments, and there's no interest in the schedule. Any rounding difference is taken up by the last payment.
Sources
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