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Amortization Schedule Calculator
Generate your loan amortization schedule. See detailed monthly breakdowns of principal and interest payments and remaining loan balance over the life of your loan.
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Enter your loan amount, interest rate, loan term, and payment frequency to get your amortization schedule.
| Payment # | Payment | Principal | Interest | Balance |
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Financial Disclaimer
The information provided by this Amortization Schedule Calculator is intended for educational and illustrative purposes only. It does not constitute financial, tax, legal, or investment advice. Results are estimates based on the inputs you provide and may not reflect actual loan terms, fees, closing costs, property taxes, homeowners insurance, or private mortgage insurance (PMI). Always consult a qualified financial advisor, mortgage professional, or licensed lender before making borrowing decisions. Interest rates, loan terms, and lending requirements vary by institution and are subject to change without notice. myUSFinance assumes no liability for actions taken based on calculator results.
Understanding Amortization Schedules
An amortization schedule is a detailed table that breaks down every payment you make over the life of a loan into its two core components: principal and interest. When you take out a mortgage or any fixed-rate installment loan, you agree to repay the borrowed amount plus interest through a series of equal periodic payments. However, the way each payment is divided between principal and interest changes dramatically over time, and understanding this division is essential for making informed financial decisions.
In the early years of a mortgage, the vast majority of each monthly payment goes toward paying interest charges rather than reducing the principal balance. For example, on a typical 30-year mortgage at 6.5% interest, more than 80% of your first payment may go toward interest alone. As you continue making payments and the outstanding balance decreases, the interest portion shrinks while the principal portion grows. This gradual shift is the essence of amortization — the systematic reduction of debt through scheduled, equal payments over a fixed term.
Amortization schedules are invaluable tools for homebuyers, real estate investors, and anyone carrying installment debt. They allow you to see exactly when you will reach key equity milestones, how much total interest you will pay over the loan's lifetime, and how extra payments could accelerate your payoff timeline. Lenders are required by the Truth in Lending Act (TILA) to disclose amortization details, but having your own schedule empowers you to verify lender calculations, compare loan offers, and plan your long-term financial strategy with precision. Whether you are buying your first home or refinancing an existing mortgage, reviewing an amortization schedule should be one of your first steps.
How to Use This Calculator
Our Amortization Schedule Calculator is designed to give you a complete, payment-by-payment breakdown of any fixed-rate loan. Follow these steps to generate your personalized schedule:
- Enter your Loan Amount — This is the total amount you plan to borrow (the principal). For a mortgage, this is typically the home price minus your down payment. For example, if you are purchasing a $350,000 home with a 20% down payment, your loan amount would be $280,000.
- Input the Annual Interest Rate — Enter the annual percentage rate (APR) your lender has quoted. Even small differences in rate — such as 6.5% versus 7.0% — can result in tens of thousands of dollars in additional interest over a 30-year term.
- Set the Loan Term — Choose the number of years over which you will repay the loan. Common mortgage terms include 15, 20, and 30 years. Shorter terms mean higher monthly payments but significantly less total interest paid.
- Select Payment Frequency — Choose how often you make payments: monthly (12 per year), bi-weekly (26 per year), or weekly (52 per year). Bi-weekly payments can shave years off your mortgage and save thousands in interest.
- Review the Results — Click calculate to view your periodic payment amount, total payments over the loan life, total interest paid, and a full payment-by-payment schedule showing principal, interest, and remaining balance for every single payment.
Use the generated schedule to compare different loan scenarios. Try adjusting the term from 30 years to 15 years, or see how a 0.25% rate reduction impacts your total cost. This calculator helps you make data-driven decisions about one of the largest financial commitments of your life.
The Amortization Formula Explained
The standard amortization formula calculates the fixed periodic payment required to fully repay a loan over a set number of periods at a constant interest rate:
Where each variable represents:
- M = Monthly (periodic) payment amount
- P = Principal loan amount (the total amount borrowed)
- r = Periodic interest rate (annual rate divided by number of payments per year)
- n = Total number of payments (loan term in years multiplied by payments per year)
This formula ensures that each payment covers the accrued interest for the period while also reducing the principal balance, so the loan is fully paid off after exactly n payments.
Worked Example: $300,000 Mortgage at 6.5% for 30 Years
P = $300,000 | Annual Rate = 6.5% | Term = 30 years (monthly payments)
r = 0.065 / 12 = 0.005417 | n = 30 × 12 = 360 payments
M = 300,000 × [ 0.005417 × (1.005417)360 ] / [ (1.005417)360 − 1 ]
M = 300,000 × [ 0.005417 × 6.9913 ] / [ 6.9913 − 1 ]
M = 300,000 × 0.037878 / 5.9913 = 300,000 × 0.006321
M ≈ $1,896.20 per month
Over 360 payments, you would pay a total of $682,633, meaning $382,633 goes to interest — more than the original loan amount. This illustrates why understanding amortization is so important.
Amortization Comparison: Different Loan Scenarios
| Loan Amount | Interest Rate | Term | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|---|---|
| $200,000 | 6.0% | 30 years | $1,199 | $231,677 | $431,677 |
| $200,000 | 6.0% | 15 years | $1,688 | $103,788 | $303,788 |
| $300,000 | 6.5% | 30 years | $1,896 | $382,633 | $682,633 |
| $300,000 | 6.5% | 15 years | $2,613 | $170,389 | $470,389 |
| $400,000 | 7.0% | 30 years | $2,661 | $558,036 | $958,036 |
| $400,000 | 7.0% | 15 years | $3,595 | $247,159 | $647,159 |
| $500,000 | 6.75% | 30 years | $3,243 | $667,341 | $1,167,341 |
| $500,000 | 6.75% | 20 years | $3,802 | $412,360 | $912,360 |
5 Tips to Save Money on Your Amortized Loan
Make Extra Principal Payments
Even an extra $100 per month toward principal on a $300,000 mortgage at 6.5% can save you over $65,000 in interest and shorten your loan by nearly 5 years. Specify that any additional payments should be applied directly to principal, not future payments.
Consider a Shorter Loan Term
Switching from a 30-year to a 15-year mortgage typically reduces your interest rate by 0.25% to 0.75% and cuts total interest paid by more than half. While monthly payments will be higher, the long-term savings are substantial — often exceeding $200,000 on a typical mortgage.
Switch to Bi-Weekly Payments
By paying half your monthly payment every two weeks, you effectively make 13 full payments per year instead of 12. This simple change can cut approximately 4 to 6 years off a 30-year mortgage and save tens of thousands of dollars in interest.
Refinance When Rates Drop
If market interest rates fall at least 0.75% to 1.0% below your current rate, refinancing may save you significant money. Use this calculator to compare your current amortization schedule against a new loan to determine whether the savings justify closing costs, which typically range from 2% to 5% of the loan amount.
Apply Windfalls to Your Mortgage
Tax refunds, bonuses, inheritance, and other unexpected income can make a powerful impact when applied as lump-sum principal payments. A single $5,000 extra payment in the first year of a 30-year mortgage at 6.5% can save over $15,000 in lifetime interest charges.
Scenario Comparison: 30-Year Mortgage: Interest vs. Principal Over Time
How the proportion of interest versus principal changes over the life of a $300,000 mortgage at 7%.
| Year | Annual Interest | Annual Principal | Remaining Balance | Equity Built |
|---|---|---|---|---|
| Year 1 | $20,873 | $3,077 | $296,923 | $3,077 |
| Year 5 | $20,034 | $3,916 | $283,258 | $16,742 |
| Year 10 | $18,433 | $5,517 | $261,403 | $38,597 |
| Year 20 | $13,262 | $10,688 | $188,714 | $111,286 |
| Year 30 | $1,268 | $22,682 | $0 | $300,000 |
Frequently Asked Questions
An amortization schedule is a comprehensive table that lists every payment over the life of a loan, breaking each payment into its principal and interest components. It also shows the remaining loan balance after each payment. This schedule helps borrowers understand how their debt decreases over time and how much of each payment goes toward interest versus actually reducing the amount owed. Most fixed-rate mortgages, auto loans, and personal loans follow a standard amortization schedule.
Interest is calculated on the outstanding principal balance. At the start of a loan, the balance is at its highest, so the interest charge for each period is also at its maximum. As you gradually pay down the principal, less interest accrues each period, and a larger share of your fixed payment goes toward reducing the balance. This front-loading of interest is an inherent characteristic of amortized loans and is why early extra payments have the greatest impact on total interest savings.
Extra payments reduce your outstanding principal balance faster than the original schedule anticipates. Since interest is calculated on the remaining balance, a lower balance means less interest accrues in subsequent periods. This creates a compounding effect — each extra payment saves you interest not just for one period, but for every remaining period of the loan. Even modest additional payments of $50 to $200 per month can shorten a 30-year mortgage by several years and save tens of thousands of dollars in total interest.
A 15-year mortgage typically offers a lower interest rate (usually 0.25% to 0.75% less) and requires higher monthly payments, but you pay far less total interest. A 30-year mortgage has lower monthly payments, providing more cash flow flexibility, but you pay significantly more interest over the life of the loan. For a $300,000 loan, the difference in total interest between a 15-year and 30-year term can exceed $200,000. Your choice depends on your monthly budget, financial goals, and how long you plan to stay in the home.
Yes, this amortization calculator works for any fixed-rate installment loan, including auto loans, personal loans, student loans, and home equity loans. Simply enter the loan amount, annual interest rate, and term in years. The underlying amortization formula is the same regardless of the loan type. However, keep in mind that some loans may have variable rates, origination fees, or prepayment penalties that are not factored into this basic calculation. Always review your specific loan agreement for complete terms.
Amortization calculators provide highly accurate estimates based on standard financial formulas. However, actual loan payments may differ slightly due to rounding conventions used by lenders, the specific day-count method applied, escrow payments for property taxes and insurance, private mortgage insurance (PMI), and any fees rolled into the loan. The calculator gives you an excellent baseline for comparison and planning, but your lender's official disclosure documents will contain the exact figures for your specific loan. Use this tool for comparison shopping and financial planning rather than as a substitute for official loan documentation.