mortgagebeginner7 min

Amortization Schedule Calculator

Generate a full amortization schedule for your loan. See monthly breakdowns of principal, interest, and balance over the life of your loan.

Enter Your Details

Loan Amount

Annual Interest Rate

Loan Term

years

Extra Monthly Payment

Monthly Payment

Full Results

Total Interest Paid

Total Cost of Loan

Payoff Time

Payoff Years

Months Saved (vs minimum)

Interest Saved

Total Cost Breakdown

What is Amortization Schedule Calculator?

An amortization schedule calculator shows you exactly how each loan payment is split between principal and interest over the life of the loan.

How It Works

Enter your loan amount, interest rate, term, and any extra payments. The calculator generates your monthly payment and shows the impact of extra payments on total interest and payoff time.

The Formula

M = P x [r(1+r)^n] / [(1+r)^n - 1]
Where: M = monthly payment, P = principal, r = monthly rate, n = months
Principal payment = M - (Balance x r)
Interest payment = Balance x r

Each monthly payment is split between principal and interest. Early payments are mostly interest; later payments are mostly principal (amortization). Extra payments go directly to principal, reducing total interest and shortening the loan term.

Examples

Example: $300,000 at 6.5% for 30 years

With $200 extra monthly payment

Standard payment is $1,896/month. With $200 extra ($2,096/month), you pay off the loan in 23 years 8 months instead of 30 years, saving 76 months and $89,000 in interest.

Pros & Cons

Pros

✓See exactly how payments are applied
✓Understand the power of extra payments
✓Plan loan payoff strategy
✓Compare different loan scenarios

Cons

✗Simple fixed-rate amortization
✗Doesn't handle adjustable rates
✗Excludes taxes and insurance
✗Extra payment impact assumes consistent payments

Common Mistakes to Avoid

!Not making extra payments early
!Forgetting to specify extra payments correctly
!Refinancing resets the amortization clock
!Not checking for prepayment penalties

Expert Tips

★Make extra payments early when impact is largest
★Even one extra payment per year saves years of payments
★Round up your payment to the nearest $50
★Use bi-weekly payments for 13 payments per year

Frequently Asked Questions

What is amortization?

Amortization is the process of paying off a loan through regular payments over time. Each payment covers the interest due plus some principal. Early payments are mostly interest; later payments are mostly principal. This is why paying extra early saves so much interest.

How do extra payments save money?

Extra payments go directly toward your principal balance, reducing the amount that accrues interest in future months. Even small extra payments can save thousands in interest and shorten your loan term by years.

Should I make extra payments or invest?

If your mortgage rate is higher than what you expect to earn investing (after taxes), pay down the mortgage. If your rate is low (under 4%), investing may be better. Also consider whether you have higher-interest debt first.

Can I pay off my loan early without penalty?

Most mortgages in the US do not have prepayment penalties, but some loans do. Check your loan documents. Auto loans and personal loans may have prepayment penalties. Always verify before making extra payments.

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