Generate a full amortization schedule for any fixed-rate loan and see, month by month or year by year, how each payment splits between interest and principal.
What is an amortization schedule?
An amortization schedule lists every payment on a loan and shows how much goes to interest, how much reduces the principal, and what you still owe afterwards. It applies to fixed-rate mortgages, car loans, personal loans and student loans.
How amortization works
Your payment stays the same each month, but its make-up changes:
- Interest for the month = current balance × (annual rate ÷ 12).
- Principal paid = payment − interest.
- New balance = old balance − principal paid.
Because interest is charged on the remaining balance, early payments are mostly interest. As the balance shrinks, more of each payment goes to principal.
Payment = P × r ÷ (1 − (1 + r)−n)
Worked example
A $200,000 loan at 6% for 30 years has a monthly payment of $1,199.10.
- In month 1, interest is $200,000 × 0.5% = $1,000.00, so only $199.10 goes to principal.
- After 10 years (120 payments) you still owe about $167,371, even though you have paid nearly $144,000.
- Over the full 30 years, total interest comes to about $231,676.
Why the schedule matters
- Extra payments go straight to principal, so a little extra early in the loan saves a lot of interest. See the loan payoff calculator.
- Refinancing restarts the schedule, which is why a lower payment does not always mean lower total cost. Compare with the refinance calculator.
- Selling early means you will have built less equity than you might expect from the payments made.
Frequently asked questions
Why does my lender's schedule differ slightly?
Lenders round each month's interest to the cent and may count days differently. Differences of a few cents per month are normal.
Does this work for interest-only loans?
No. During an interest-only period the balance does not fall. Use the loan calculator for standard fixed-rate loans.
Related tools
Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.