Amortization Calculator
See how each mortgage payment is divided between principal and interest, track your remaining balance over time, and estimate the total interest paid over the life of your loan.
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- Results shown instantly
Loan Summary
Payment Breakdown
How your total payments split between the amount you borrowed and the cost of borrowing.
Balance & Payments Over Time
Cumulative principal and interest paid each year, with the remaining balance declining toward zero.
Amortization Schedule
Yearly by default — tap a year to view its monthly payments.
Total Principal Paid
$320,000
Total Interest Paid
$408,142
Total Amount Paid
$728,142
Final Balance
$0
| Year | Beginning Balance | Scheduled Principal | Extra Principal | Total Principal | Interest | Total Paid | Ending Balance |
|---|---|---|---|---|---|---|---|
| 1 | $320,000 | $3,577 | $0 | $3,577 | $20,695 | $24,271 | $316,423 |
| 2 | $316,423 | $3,816 | $0 | $3,816 | $20,455 | $24,271 | $312,607 |
| 3 | $312,607 | $4,072 | $0 | $4,072 | $20,200 | $24,271 | $308,535 |
| 4 | $308,535 | $4,345 | $0 | $4,345 | $19,927 | $24,271 | $304,191 |
| 5 | $304,191 | $4,636 | $0 | $4,636 | $19,636 | $24,271 | $299,555 |
| 6 | $299,555 | $4,946 | $0 | $4,946 | $19,325 | $24,271 | $294,609 |
| 7 | $294,609 | $5,277 | $0 | $5,277 | $18,994 | $24,271 | $289,332 |
| 8 | $289,332 | $5,631 | $0 | $5,631 | $18,641 | $24,271 | $283,701 |
| 9 | $283,701 | $6,008 | $0 | $6,008 | $18,264 | $24,271 | $277,694 |
| 10 | $277,694 | $6,410 | $0 | $6,410 | $17,861 | $24,271 | $271,284 |
| 11 | $271,284 | $6,839 | $0 | $6,839 | $17,432 | $24,271 | $264,444 |
| 12 | $264,444 | $7,297 | $0 | $7,297 | $16,974 | $24,271 | $257,147 |
| 13 | $257,147 | $7,786 | $0 | $7,786 | $16,485 | $24,271 | $249,361 |
| 14 | $249,361 | $8,308 | $0 | $8,308 | $15,964 | $24,271 | $241,053 |
| 15 | $241,053 | $8,864 | $0 | $8,864 | $15,407 | $24,271 | $232,189 |
| 16 | $232,189 | $9,458 | $0 | $9,458 | $14,814 | $24,271 | $222,732 |
| 17 | $222,732 | $10,091 | $0 | $10,091 | $14,180 | $24,271 | $212,641 |
| 18 | $212,641 | $10,767 | $0 | $10,767 | $13,505 | $24,271 | $201,874 |
| 19 | $201,874 | $11,488 | $0 | $11,488 | $12,784 | $24,271 | $190,386 |
| 20 | $190,386 | $12,257 | $0 | $12,257 | $12,014 | $24,271 | $178,129 |
| 21 | $178,129 | $13,078 | $0 | $13,078 | $11,193 | $24,271 | $165,051 |
| 22 | $165,051 | $13,954 | $0 | $13,954 | $10,317 | $24,271 | $151,097 |
| 23 | $151,097 | $14,888 | $0 | $14,888 | $9,383 | $24,271 | $136,208 |
| 24 | $136,208 | $15,886 | $0 | $15,886 | $8,386 | $24,271 | $120,323 |
| 25 | $120,323 | $16,949 | $0 | $16,949 | $7,322 | $24,271 | $103,373 |
| 26 | $103,373 | $18,085 | $0 | $18,085 | $6,187 | $24,271 | $85,289 |
| 27 | $85,289 | $19,296 | $0 | $19,296 | $4,976 | $24,271 | $65,993 |
| 28 | $65,993 | $20,588 | $0 | $20,588 | $3,683 | $24,271 | $45,405 |
| 29 | $45,405 | $21,967 | $0 | $21,967 | $2,305 | $24,271 | $23,438 |
| 30 | $23,438 | $23,438 | $0 | $23,438 | $833 | $24,271 | $0 |
This schedule reflects loan principal and interest only — taxes, insurance, PMI, and HOA are not included in the loan balance.
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What Is an Amortization Schedule?
An amortization schedule is a table showing how each payment on a fixed-rate loan is divided between principal (the amount that reduces your balance) and interest (the cost of borrowing). It also tracks the remaining balance after every payment, all the way to zero.
Early in a mortgage, most of each payment is interest because the outstanding balance is at its largest. Over time, as the balance shrinks, the interest portion of each payment falls and the principal portion grows — a gradual shift from interest-heavy payments toward principal-heavy payments. The total monthly principal-and-interest payment stays the same for a fixed-rate loan; only the split changes.
How Mortgage Amortization Works
Each monthly payment is calculated in four steps:
Beginning Balance
the amount you still owe at the start of the month, before that month's payment.
Interest
the beginning balance multiplied by the monthly interest rate.
Principal
the scheduled payment minus the interest — the part that reduces your balance.
Ending Balance
the beginning balance minus the principal paid (and any extra principal).
The monthly payment formula
M = P × [r(1+r)n] / [(1+r)n − 1]
- M = monthly principal & interest payment
- P = original principal (loan amount)
- r = monthly interest rate (annual rate ÷ 12)
- n = total number of monthly payments (years × 12)
Each month, interest is charged on the remaining balance, and the rest of your payment reduces principal. At a 0% interest rate, the formula simplifies to M = P ÷ n: the loan divided evenly across all payments, with no interest.
Why More Interest Is Paid Early in a Mortgage
Interest is calculated from the outstanding principal, which is largest at the very beginning of the loan. Because the balance is highest then, the interest portion of each early payment is also at its highest — and the principal portion is at its lowest.
As you pay the balance down, each month's interest charge gets smaller, so a larger share of the same monthly payment goes to principal. This is why the "crossover point" — the payment where more of your money goes to principal than interest — usually arrives many years into a 30-year loan, not at the start.
How Extra Payments Change Amortization
Additional principal payments are applied directly to your balance. Because interest is calculated on the remaining balance each month, a smaller balance means less interest charged going forward — which means more of your regular payment also goes to principal. The effect compounds over time.
- Reduce the outstanding balance faster
- Lower the interest charged in every future month
- Shorten the payoff period without lowering your required monthly payment
Borrowers should verify how their loan servicer applies additional payments — some servicers require instructions to apply extra funds to principal rather than to future payments. Open the Extra Payments option in the calculator above to model your scenario and see your new payoff date, time saved, and interest saved.
Amortization Calculator Methodology
- Monthly payment formula: the standard fixed-rate amortization formula, M = P × [r(1+r)^n] / [(1+r)^n − 1], with a 0% rate handled as M = P ÷ n.
- Monthly interest: the annual interest rate divided by 12, applied to the beginning balance of that month.
- Principal calculation: the scheduled payment minus that month's interest; the remainder reduces the balance.
- Balance reduction: ending balance = beginning balance − principal paid − extra principal. The balance declines over the term until it reaches zero.
- Extra-payment handling: extra monthly, extra annual, and one-time payments are applied to principal only and never reduce the scheduled monthly payment.
- Final-payment adjustment: if a payment would overpay the loan, it is capped at the remaining balance so the ending balance never goes negative.
- Payoff-date calculation: the date of the final payment in the schedule, derived from the start date plus the number of payments made.
- Interest-savings calculation: total interest of the original schedule minus total interest of the schedule with extra payments, floored at zero.
- Rounding: all calculations are performed using full numerical precision internally and rounded only for display. The amortization table reconciles with the summary totals.
MoneyMetric HQ performs calculations using full numerical precision internally and rounds values for display. This calculator focuses on principal and interest only — taxes, insurance, PMI, and HOA are not part of the loan balance here.
See our MoneyMetric HQ Methodology page for the general approach behind all MoneyMetric HQ calculators.
Amortization Example
Illustrative Example
- Loan Amount: $320,000
- Interest Rate: 6.5%
- Loan Term: 30 years
Using the formula, the scheduled monthly principal & interest payment is approximately $2,022.62. Over 30 years, total interest comes to about $408,142.
The first payments contain more interest because the outstanding balance is highest near the beginning of the loan. As the balance declines, each payment's interest portion shrinks and its principal portion grows — until the loan is paid off.
This is an illustrative example and the 6.5% rate is not intended to represent a current mortgage rate or available lending offer.
Amortization Calculator FAQs
What is mortgage amortization?
Amortization is the process of paying off a loan in equal scheduled payments over a set term, where each payment covers the interest for that month and applies the remainder to principal. Over time the balance declines to zero.
What is an amortization schedule?
A table showing how each payment splits between principal and interest and how the remaining balance declines over the life of the loan — month by month or year by year.
How is mortgage interest calculated?
Each month, interest is charged on the remaining balance at the monthly rate (the annual rate divided by 12). The rest of your scheduled payment reduces principal.
Why do early mortgage payments contain more interest?
Because interest is calculated on the outstanding balance, which is largest at the start of the loan. As the balance falls, the interest portion of each payment falls too and more goes to principal.
When does more of my payment start going toward principal?
Gradually. The crossover point — where principal exceeds interest in a single payment — usually arrives years into a long loan, because the balance must drop far enough for the monthly interest to fall below the principal portion.
Do extra payments reduce mortgage interest?
Yes. Extra payments applied to principal lower the balance, which reduces the interest charged every month after that — so more of each future payment also goes to principal.
Can extra payments shorten my mortgage?
Yes. Because extra payments reduce principal faster, the loan reaches a zero balance sooner, shortening the payoff period.
Does making extra payments reduce my required monthly payment?
No. Extra payments reduce your balance and your term, not your scheduled monthly payment, unless you formally recast or refinance your loan. Verify how your servicer applies additional payments.
Why might my lender's amortization schedule differ slightly?
Payment timing, day-count conventions, rounding, fees, escrow adjustments, and how your servicer applies extra payments can all cause small differences between this estimate and a lender's schedule.
Does this calculator include taxes and insurance?
No. This calculator focuses on principal and interest. For a broader estimated monthly housing payment that includes property taxes, insurance, PMI, and HOA, use our Mortgage Calculator.
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Read guideUnderstanding Mortgage Interest
How Down Payments Work
What Is PMI?
15-Year vs. 30-Year Mortgages
Understanding Closing Costs
MoneyMetric HQ calculators are provided for educational and informational purposes. Results are estimates and may differ from lender or loan-servicer calculations because of payment timing, rounding, fees, loan terms and other factors. MoneyMetric HQ does not provide personalized financial, investment, tax, legal or credit advice. See our Methodology, Financial Disclaimer, and Privacy Policy.